Refer to the accompanying figures. If Mallory and Rick are the only two consumers in this market and the price of soda increases from $0.75 to $1.00 per can, the quantity of soda demanded in the market will ________ by ________ cans per month.
A. increase; 20
B. decrease; 20
C. decrease; 40
D. increase; 40
Answer: C
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The greater the magnitude of the absolute value of the income elasticity of demand for a good, the more the
A) demand for that good changes when income changes. B) total revenue for firms producing that good changes when income changes. C) price of the good changes when income changes. D) All of the above answers are correct.
What does a production possibility frontier represent?
What will be an ideal response?
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