According to the Estimates of a Harvard Economist, the Demand

question 9

Multiple Choice

According to the estimates of a Harvard economist, the demand for cocaine is unit elastic.This means if the price of cocaine were to rise by 10 percent, (i) quantity consumed would fall 10 percent and (ii) dealer income from the sale of cocaine would fall 10 percent.Which of these two statements are correct?

• A) i and ii
• B) i not ii
• C) ii not i
• D) neither i nor ii

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Definitions:

Elaborate Shells

Complex and intricately designed outer coverings that protect the bodies of certain animals, like snails and turtles.

Silica

A hard, unreactive chemical compound of silicon and oxygen, used in various industries and forming the major constituent of sand.

Diatoms

Microalgae with silica shells, found in almost every aquatic environment and play a crucial role in oxygen production.

Pseudopodia

Temporary, amoeba-like projections of eukaryotic cell membranes that are used for movement and feeding.