You Demonstrate How to Make a Paper Airplane to Two

question 32

Multiple Choice

You demonstrate how to make a paper airplane to two boys, Fred and Ted.Fred and Ted are the same age, have the same IQs, live in the same middle class neighborhood and in fact are exactly alike in all respects save one:You have shown Ted how to make several other kinds of toys in the past.You predict that .

• A)Ted's paper plane will be better than Fred's
• B)Fred's paper plane will be better than Ted's
• C)Fred will show more interest in your demonstration than Ted will
• D)there will be no difference in their paper planes

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Definitions:

Perfect Competitor's Demand Curve

A horizontal line reflecting a perfectly elastic demand situation where the firm can sell any quantity at the prevailing market price.

Perfectly Elastic

Describes a situation where the quantity demanded or supplied responds infinitely or extremely to changes in price.

Highly Inelastic

Describes demand that is hardly responsive to changes in price, typically for necessities where consumption does not decrease significantly with a price increase.

Total Profit

The overall financial gain made by a business after subtracting all expenses from total revenue.