If a Large Percentage Fall in the Price of Good

question 130

Multiple Choice

If a large percentage fall in the price of good A results in a small percentage decrease in the quantity supplied,then

• A)demand is elastic.
• B)demand is inelastic.
• C)demand is income inelastic.
• D)supply is inelastic.
• E)supply is elastic.

Learn how to interpret shifts in the budget line and what they imply about price and income changes.

Comprehend the marginal rate of substitution and its role in consumer choice.

Analyze the impact of changes in utility on consumption choices.

Understand the relationship between price changes, demand movements, and shifts in equilibrium.

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Definitions:

VMPL

The value of the marginal product of labor, which is the additional value created from an increase in labor input.

Equilibrium Market Wage

The wage rate at which the quantity of labor supplied and the quantity of labor demanded are equal.

Bricklayers

Tradespeople who lay bricks, concrete blocks, and other types of masonry materials to construct or repair walls, partitions, and other structures.

Wage Rate

The pay a worker gets for each unit of time or output produced.