When the IPhone5 Was Introduced, the Demand for IPhone5 Protective

question 82

Multiple Choice

When the iPhone5 was introduced, the demand for iPhone5 protective cases increased. This information tells us that the iPhone5 and iPhone5 protective cases are

• A)substitutes and their indifference curves are close to straight lines.
• B)substitutes and their indifference curves are close to L-shaped.
• C)complements and their indifference curves are close to L-shaped.
• D)complements and their indifference curves have a constant marginal rate of substitution.
• E)substitutes and their indifference curves have a constant marginal rate of substitution.

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Definitions:

Nondiscriminating Monopolist

A monopolist that charges a single price for all units of a product sold, rather than engaging in price discrimination among different consumers.

Perfectly Elastic

Perfectly elastic describes a situation in which the quantity demanded or supplied can change infinitely in response to any change in price.

Imperfectly Competitive

Describes a market structure where the conditions necessary for perfect competition are not fully met, allowing firms some power to set prices.

Marginal Revenue Curve

A graphical representation that shows how additional revenue varies with changes in output.