Homework Answers
1)
Answer: (A)
A large change in price is associated with the small change in the quantity that occurs when demand is inelastic. or a large change in price causes only a small change in quantity demanded.
2)
Answer: (C)
Cross elasticity of demand = % change in quantity demanded/ % change in price of other good.
3)
Answer: ( B)
Consumer surplus is maximum price consumer wants to pay and actual he pays.
4)
Answer: (A)
There is no change in quantity demanded after change in price, thus it is perfectly inelastic demand.
5)
Answer: (C)
The area above the supply curve but below the price line from the origin to quantity purchased is called producer surplus.
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MC Qu. 50 Suppose you observe that minor changes... Suppose you observe that minor changes in...
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Question 9 Which of the following statements is true? The demand curve for a necessity is...
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