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By Knowing the Price Elasticity of Demand, Economists Can Anticipate

question 23

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By knowing the price elasticity of demand, economists can anticipate the size of shifts in the supply of a commodity, such as oil.


Definitions:

Production Possibilities

The different quantities of goods and services an economy can produce when all its resources are fully and efficiently utilized.

Opportunity Cost

The expense incurred by not choosing the second-best option available during decision-making.

Farmer

An individual engaged in agricultural activities, involved in the cultivation of crops or the raising of livestock.

Economic Progress

The process through which an economy grows or improves its capacity to meet its population's needs and wants.

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