If tolls on a toll road can be raised significantly before commuters will consider using a free alternative, demand for using the toll road must be
A) unit elastic. B) inelastic. C) perfectly elastic. D) elastic.
B
You might also like to view...
GDP would be a better measure of economic well-being if it included:
A. the value of leisure. B. the market value of final goods. C. the total value of intermediate goods. D. the costs of education.
Which statement is true?
A. Mass production can take place without mass consumption. B. Mass consumption can take place without mass production. C. Mass production can take place without mass consumption and mass consumption can take place without mass production. D. Mass production cannot take place without mass consumption, nor can mass consumption take place without mass production.
If the electric company is allowed by regulators to earn only a normal profit, it will produce at the point where
a. MR = MC b. P = MC c. MC = quantity demanded d. P = AC e. MR = AC
The marginal utility graph for both would be negative because the marginal utility per hamburger and the marginal utility per milkshake both decrease as the quantity consumed increases. Both graphs would also approximate a curve because the change in marginal utility is not constant as the quantity consumed increases; for both graphs, the change is greater between the first two units consumed than between the last two units consumed. In addition, because the overall change in the marginal utility of hamburgers is greater than the change in the marginal utility of milkshakes, the hamburger curve would be steeper than the milkshake curve.
What will be an ideal response?