-The Above Table Gives the Demand Schedule for Billy Bob's

question 527

Multiple Choice

-The above table gives the demand schedule for Billy Bob's BBQ ribs. The demand for Billy Bob's ribs over the price range of $1 per pound to $3 per pound is

• A) perfectly elastic.
• B) elastic.
• C) unit elastic.
• D) inelastic.

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Definitions:

Marginal Social Benefits

The additional benefits to society as a whole from producing one more unit of a good or service.

Socially Optimal Level

The level of output or activity where the benefits to society are maximized, taking into account both private and external costs and benefits.

Marginal Private Benefits

The additional satisfaction or utility gained by a consumer or firm from consuming or producing one more unit of a good.

Positive Externalities

Benefits that are enjoyed by a third-party or the society at large, as a result of an economic transaction.