If the Quantity of Carrots Demanded Increases by a Large

question 133

Multiple Choice

If the quantity of carrots demanded increases by a large percentage when income increases by a small amount, we know that the demand for carrots is

• A)price elastic.
• B)price inelastic.
• C)income inferior.
• D)income inelastic.
• E)income elastic.

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Definitions:

Concentration Ratios

Measures indicating the market share of the largest firms within an industry, used to assess the degree of market concentration and competition.

Shortcomings

Deficiencies or weaknesses in a plan, system, or personal characteristic that prevent achieving optimal performance or results.

Cutthroat Oligopolist

A firm in an oligopoly market structure that aggressively competes on price, often to the detriment of profit margins.

Prices

The amount of money required to purchase goods or services, determined by factors like supply and demand, production costs, and competition.