The Ramsey Pricing Rule Shows That the _______ Elastic the Demand

question 30

Multiple Choice

The Ramsey pricing rule shows that the _______ elastic the demand for a good is, the more its price will _____________ its marginal cost

• A) less, fall below
• B) more, rise above
• C) less, rise above

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Definitions:

Anemones

Marine or freshwater polyps that belong to the phylum Cnidaria, characterized by their colorful appearance and a ring of tentacles surrounding a central mouth.

Euphotic Zone

The layer of a body of water that is sufficiently lit by sunlight, allowing photosynthesis by aquatic plants and phytoplankton.

Light Absorption

The process by which materials take in light energy, which can be converted into other forms of energy or result in an increase in temperature.

Coral Bleaching

The phenomenon where corals lose their vibrant colors and turn white due to stress factors like increased sea temperatures and pollution.