List three characteristics of demand curves. Make sure to explain the shape of the curve and the meaning of the vertical and horizontal intercepts
What will be an ideal response?
First, they are downward sloping. Second, they intersect the vertical axis because there will be a price above which quantity demanded will be zero. Last, they intersect the horizontal axis. Even at a price of zero, quantity demanded will be limited for a given period of time.
Economics
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The above figure shows the demand curve for movie rentals from Redbox. If Redbox lowered its price from $4.00 to $3.50, then total revenue would ________ because demand is ________
A) decrease; elastic B) increase; elastic C) decrease; inelastic D) increase; inelastic
Economics
Given the budget line in the figure above, the combination of chips that is NOT affordable is
A) a. B) b. C) c. D) d.
Economics