In which of the following ways is the demand curve different in graph a and graph b
a. In graph a, its horizontal; in graph b, its upward sloping.
b. In graph a, it touches the minimum point of the ATC curve; in graph b it misses this point.
c. In graph a, it equals P; in graph b, it equals MC.
d. In graph a, it intersects the MC curve; in graph b, it misses the MC curve.
b. In graph a, it touches the minimum point of the ATC curve; in graph b it misses this point.
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A tradeoff is
A) represented by a point inside a PPF. B) represented by a point outside a PPF. C) a constraint that requires giving up one thing to get another. D) a transaction at a price either above or below the equilibrium price.
If income increases by 2.0 percent, and quantity demanded of a good increases by 0.2 percent, the income elasticity for the good is
A) 0.22. B) 0.002. C) 0.10. D) 1.00.