Figure 7-5 Which of the Following Is True for the Demand Curve

question 70

Multiple Choice

Figure 7-5
Which of the following is true for the demand curve depicted in Figure 7-5?

• A) In the $3 to $4 range, the price elasticity of the demand curve equals 1.
• B) At a price of $3, the price elasticity of the demand curve equals approximately − 3.3.
• C) In the $3 to $4 range, the demand curve is inelastic.
• D) In the $3 to $4 range, the demand curve is elastic.

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Definitions:

Binding Minimum Wage

A set wage minimum by the government that is above the equilibrium wage, leading to potential excess supply of labor, or unemployment.

Surplus Of Labor

A situation where the supply of labor exceeds the demand for labor, leading to unemployment or underemployment.

Minimum Wage

The lowest wage per hour that employers can legally pay their employees, as set by law or agreement.

Adverse Effects

Negative and potentially harmful outcomes or reactions caused by a procedure, policy, or product.