As One Moves Down a Straight-Line Demand Curve Away from the Vertical

question 101

True/False

As one moves down a straight-line demand curve away from the vertical axis, demand becomes less elastic and then inelastic.

Calculate the maximum amount individuals are willing to pay for a good given their utility functions and budget constraints.

Demonstrate how to find Pareto optimal allocations of resources between public and private goods.

Analyze how changes in individuals' budgets affect their willingness to pay for goods.

Identify factors that influence the Pareto efficient size of a public good.