If Two Linear Demand Functions Intersect the Quantity Axis at the Same

question 34

Multiple Choice

If two linear demand functions intersect the quantity axis at the same point, then:

• A)when prices are equal, so are the elasticities.
• B)when quantities are equal, so are the price elasticities.
• C)when prices are equal, so are the quantities.
• D)at the point of intersection the two elasticities are equal to one.

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Definitions:

Recession Of 2001

A brief economic downturn in the United States that occurred in the early 2000s, marked by a decline in the stock market and increased unemployment.

Terrorist Attacks

Violent acts or threats intended to create fear and achieve a political, religious, or ideological aim, often targeting civilians.

Exogenously

Originating from outside; determined by external factors not within the system.

Endogenously

Originating or produced from within a system, indicating a factor that is internal to an economic model or process.