Assume that the price-consumption curve is horizontal. What additional information does that tell you about the demand for good X and the amount people spend on it?
What will be an ideal response?
The demand has an elasticity of 1 across the specified price range and, therefore, people spend a constant amount on good X over this price range.
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The firm in the figure above is ________ that is equal to ________
A) making an economic profit; $5.14 × 7 B) making an economic profit; $3.00 × 7 C) incurring an economic loss; $5.14 × 7 D) incurring an economic loss; ($5.14 - $3.00 ) × 7 E) making an economic profit; ($5.14 - $3.00 ) × 7
Refer to Table 2-16. What is Estonia's opportunity cost of producing one board foot of lumber?
A) 0.2 cell phones B) 5 cell phones C) 8 cell phones D) 32 cell phones
One factor which did not influence the levels of real output and employment in the classical system was the
a. stock of capital. b. level of technology. c. the price level. d. size of the labor force.
In deciding on how to spend their resources, consumers try to
A. maximize expenditures. B. choose the combination of goods that yield the highest level of personal satisfaction. C. choose the combination of goods that costs the least. D. maximize profit.