Refer to the graph shown. Area C plus area E is:
A. smaller than area A, because demand is inelastic between $30 and $40.
B. larger than area A, because demand is elastic between $30 and $40.
C. larger than area A, because demand is inelastic between $30 and $40.
D. smaller than area A, because demand is elastic between $30 and $40.
Answer: B
You might also like to view...
In a perfectly competitive market:
A) the long-run market price is equal to the average fixed cost of the industry. B) the long-run market price is less than the minimum average cost of the industry. C) the long-run market price is more than the minimum average cost of the industry because of free entry and exit of firms. D) the long-run market price is equal to the minimum average cost of the industry because of free entry and exit of firms.
In the aggregate expenditures model, if an economy operates below equilibrium GDP, there will be unplanned inventory depletion
a. True b. False Indicate whether the statement is true or false
In 2000 . the real GDP for Malaysia was 93.15 trillion ringgit (MYR) and the population size was 20.5 million, then per capita real GDP for the year was approximately equal to _____
a. MYR 4.54 million b. MYR 45.9 million c. MYR 1,909.5 million d. MYR 191 million e. MYR 9,315 million
What would a person do if the market wage is less than his or her reservation wage?
A. The person will be unemployed. B. The person will enter the labor market. C. The person will work more hours as the wage falls further. D. The person will work as much as possible. E. The person will not participate in the labor force.