Suppose You Are Shown Two Intersecting Demand Curves That Are

question 77

Multiple Choice

Suppose you are shown two intersecting demand curves that are drawn on the same scale. At the point of intersection, one of the demand curves is steeper than the other. Which of the following could explain the difference in slopes?

• A) It is not possible to compare the slopes of different demand curves.
• B) The flatter one is for a good with no close substitutes.
• C) The steeper one has a higher income elasticity of demand.
• D) The steeper one applies for the short run whereas the flatter one applies for the long run.
• E) The steeper one is probably the demand curve for a luxury good.

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Definitions:

Altruistic Leader

A leader who prioritizes selflessly the well-being and interests of others above their own, often inspiring loyalty and high morale among followers.

Greatest Good

A principle aimed at achieving the highest level of benefit or welfare for the greatest number of people, often considered in ethical decision-making.

Ethical Approach

A method or strategy for decision-making that prioritizes ethical principles and values, often emphasizing morality, fairness, and justice.

Leadership

The act of guiding or influencing a group towards achieving a common goal through inspiration, strategy, and direction.