$\text { Demand Schedule for Ski Tickets }$ $\text { TABLE 4-2 }$

question 43

Multiple Choice

$\text { Demand Schedule for Ski Tickets }$
$\begin{array}{|l|l|}\hline \text { Price (\$) } & \begin{array}{l}\text { Quantity } \\\text { Demanded (no. of } \\\text { tickets) }\end{array} \\\hline 120 & 0 \\\hline 110 & 100 \\\hline 100 & 200 \\\hline 90 & 300 \\\hline 80 & 400 \\\hline 70 & 500 \\\hline 60 & 600 \\\hline 50 & 700 \\\hline 40 & 800 \\\hline 30 & 900 \\\hline 20 & 1000 \\\hline 10 & 1100 \\\hline 0 & 1200 \\\hline\end{array}$
$\text { TABLE 4-2 }$
-Refer to Table 4- 2. Using the data provided to plot the demand curve for ski tickets results in a
Demand curve. Price elasticity along this demand curve is therefore _ as price is falling.

• A) rectangular hyperbola; constant at a value of 1
• B) horizontal; constant at a value of 8
• C) downward sloping and linear; continuously decreasing
• D) vertical; constant at a value of 0
• E) downward sloping and linear; continuously increasing

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Definitions:

Average Fixed Cost Curve

A graphical representation showing how average fixed costs (costs that do not change with the level of output) decreases as production increases.

Output

The total amount of goods and services produced by an economy over a specific period.

Levels

Levels refer to the different positions or stages in a hierarchical structure or process, indicating varying degrees of magnitude, importance, or progress.

Efficient Scale

The level of production that minimizes long-term average total costs, resulting from economies of scale without incurring diseconomies of scale.