Refer to the Figure

question 59

Multiple Choice

Refer to the figure.If box A represents businesses and flow (7) represents goods and services, then:

• A)box D is the product market and box B is the factor market.
• B)box D is the product market and box B is households.
• C)box B is the product market and box C is households.
• D)box C is the product market and box B is the factor market.

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Definitions:

Price Decrease

refers to a reduction in the cost of a good or service, which can lead to an increase in demand due to the law of demand, assuming other factors remain constant.

Unit Elastic

A situation in which the percentage change in quantity demanded or supplied is equal to the percentage change in price.

Total Revenue

The total amount of money generated by the sale of goods or services before any costs are deducted.

Unit Elastic

A situation where a percentage change in price leads to an equal percentage change in quantity demanded or supplied.