The figure above illustrates a linear demand curve. By comparing the price elasticity in the $2 to $4 price range with the elasticity in the $8 to $10 range, you can conclude that the elasticity is
A) greater in the $8 to $10 range.
B) greater in the $2 to $4 range.
C) the same in both price ranges.
D) greater in the $8 to $10 range when the price rises but greater in the $2 to $4 range when the price falls.
A
Economics
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If marginal costs are constant what will the average variable cost curve look like? What about the average total cost curve?
What will be an ideal response?
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In a perfectly competitive market in which identical firms face the same horizontal marginal cost curve, if demand increases, then the amount of consumer surplus will
A) increase. B) decrease. C) become negative. D) not change.
Economics