Suppose the Equilibrium Price in the Market Is $10 and the Price

question 124

Multiple Choice

Suppose the equilibrium price in the market is $10 and the price elasticity of demand for the linear demand function at the market equilibrium is −1.25.Then we know that:

• A) demand is inelastic.
• B) marginal revenue is $2.
• C) marginal revenue is $50.
• D) demand is unit elastic.

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Definitions:

Clean Room

An environment, typically used in manufacturing or scientific research, that has a low level of environmental pollutants such as dust, airborne microbes, aerosol particles, and chemical vapors.

Primary Punisher

A stimulus that is inherently punishing; an example is electric shock.

Secondary Punisher

A stimulus that becomes punishing because it is associated with a primary punisher.

Negative Reinforcement

A process in behavior modification where the removal of an undesirable or unpleasant outcome after the display of a behavior increases the likelihood of the behavior being repeated in the future.