If Lola Can Produce More Output from a Set Amount

question 80

Multiple Choice

If Lola can produce more output from a set amount of resources than Kevin,________ has a(n) ________ advantage.

• A) Lola; comparative
• B) Kevin; comparative
• C) Lola; absolute
• D) Kevin; absolute
• E) Lola; normative

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Definitions:

Inelastic Demand

A situation where the demand for a product does not change significantly with a change in the price of that product.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, typically because consumers will choose higher quality substitutes when they can afford them.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period, typically showing a downward slope from left to right.