Table 23 -Refer to Table 2

question 9

Multiple Choice

Table 2.3
$$\begin{array}{l}\text { Table } 2.3\\\begin{array} { | l | l | l | l | l | l | } \hline \text { Products } & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\hline \text { Capital goods } & 0 & 1 & 2 & 3 & 4 \\\hline \begin{array} { l } \text { Consumer } \\\text { goods }\end{array} & 40 & 35 & 20 & 7 & 0 \\\hline\end{array}\end{array}$$
-Refer to Table 2.3, which shows the production possibilities frontier between the production of capital goods and consumer goods in an economy. What is the opportunity cost of producing 2 units of capital goods at point C?

• A) 13 units of capital goods
• B) 7 units of consumer goods
• C) 5 units of consumer goods
• D) 35 units of consumer goods
• E) 15 units of consumer goods.

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Definitions:

Linear Demand Curve

A graphical representation of demand that shows a direct, constant relationship between price and quantity demanded.

Total Revenue

Total Revenue is the total income generated by a firm from selling its goods or services, calculated as the unit price multiplied by the quantity sold.

Quantity Demanded

Quantity demanded is the total amount of a good or service that consumers are willing and able to purchase at a specific price point, holding other factors constant.

Price Elasticity of Demand

measures how much the quantity demanded of a good responds to a change in the price of that good, quantified as the percentage change in quantity demanded divided by the percentage change in price.