Table 9-6 Mateo and Celeste Produce Custom Saddles and Spurs

question 196

Multiple Choice

Table 9-6
Mateo and Celeste produce custom saddles and spurs. Table 9-6 lists the number of saddles and pairs of spurs Mateo and Celeste can each produce in one month.
-Refer to Table 9-6. Select the statement that accurately interprets the data in the table.

• A) Celeste has a comparative advantage in making spurs.
• B) Mateo has a comparative advantage in making spurs.
• C) Celeste has a comparative advantage in making saddles and making spurs.
• D) Neither Mateo nor Celeste has a comparative advantage in making spurs.

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Definitions:

Tax Burden

The overall impact of taxes on an individual's or company's financial well-being, often expressed as a percentage of income or revenue.

Proportional

Pertaining to a relationship where changes in one quantity result in proportional changes in another quantity.

Elasticity

A measure of how much the quantity demanded or supplied of a good or service changes in response to a change in its price.

Efficiency Loss

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.