The slope of the budget line
a. is always -1
b. represents the opportunity cost of consuming one more unit of the good measured on the horizontal axis
c. increases as more of one good is consumed
d. decreases as more of one good is consumed
e. is negative because of the law of demand
B
Economics
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Refer to the above figure. The market supply and demand curves in a perfectly competitive market intersect at $4. Which of the graphs represent the situation for an individual firm?
A) Panel A B) Panel B C) Panel C D) Panel D
Economics
Suppose the inverse demand curve for a good is expressed as Q = 50 - 2p. If the good currently sells for $3, then the price elasticity of demand is
A) -3 ? (2/50). B) -2 ? (50/3). C) -2 ? (3/44). D) -3 ? (44/2).
Economics