In a Competitive Market Where the Elasticity of the Market

question 31

Multiple Choice

In a competitive market where the elasticity of the market demand curve is -2,the elasticity of the supply curve is 1,and an individual firm faces a residual demand curve with an elasticity of -98.What is the number of firms in this market?

• A) 10
• B) 20
• C) 33
• D) Cannot be determined.

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Definitions:

Animal

refers to a multicellular, eukaryotic organism that is typically mobile, responsive to its environment, and sustains itself by consuming organic matter.

Sponge

Simple aquatic animals with porous bodies through which water can circulate, belonging to the phylum Porifera.

Blastopore

The opening that develops during early embryonic development, leading to the formation of the digestive tract in animals.

Deuterostomes

Deuterostomes are a major group in the animal kingdom characterized by the development of the anus from the first opening in the embryo, with humans and other vertebrates being examples.