In a Snack Vending Machine, Consumers Can Select One of Many

question 181

Multiple Choice

In a snack vending machine, consumers can select one of many choices. These snacks are

• A) an ideal example of unitary demand.
• B) likely to have a price elasticity equal to 1.
• C) more likely to be price elastic.
• D) likely to have a price elasticity less than 1.
• E) more likely to be price inelastic.

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Definitions:

Opportunity Cost

The economic impact of dismissing the next prime alternative while reaching a decision.

Scarce Resources

Limited supplies of inputs necessary for production, leading to trade-offs and choices in their allocation.

Capital

Assets or money possessed by an individual or organization, which can be used for initiating a business or investment purposes.

Marginal Rate

The additional cost or benefit associated with producing or consuming one additional unit of a good or service.