James Misspoke at the Banquet Last Night,became Embarrassed,and His Face

question 24

Multiple Choice

James misspoke at the banquet last night,became embarrassed,and his face looked red because the facial arteries and arteriole muscles relaxed.These arteries and arterioles were then said to be ________.

• A)constricted
• B)dilated
• C)clogged
• D)burst

Examine factors influencing the elasticity of demand for a product.

Recognize the implications of elasticity for business decisions and economic policies.

Analyze the significance of unitary elasticity and its effects on demand and revenue.

Understand the relationship between price changes and quantity demanded as depicted on a demand curve.

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Definitions:

Short-Run Equilibrium

The state in a market where supply equals demand within a limited time frame, before any long-term adjustments take place.

Long-Run Equilibrium

A state in which all factors of production and outputs are optimal, allowing for all economic agents to have no incentive to change their behavior.

MC

A term often short for Marginal Cost, which is the cost added by producing one additional unit of a product or service.

MR

Short for Marginal Revenue, which is the additional income earned by selling one more unit of a product or service.