Refer to the Above Diagram.Curve B Is A

question 134

Multiple Choice

Refer to the above diagram.Curve B is a:

• A)production possibilities curve indicating constant opportunity costs.
• B)production possibilities curve indicating increasing opportunity costs.
• C)demand curve indicating that the quantity of consumer goods demanded increases as the price of capital falls.
• D)technology frontier curve.

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Definitions:

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in its price.

Demand Schedule

A table that shows the quantity of a good that consumers are willing to purchase at different prices.

Total Revenues

The total amount of income generated by the sale of goods or services before any expenses are subtracted.

Perfectly Inelastic

A market demand situation where the quantity demanded remains constant regardless of changes in price.