Suppose That Michael Jordan, Star Basketball Player, Earns a Pure

question 35

Multiple Choice

Suppose that Michael Jordan, star basketball player, earns a pure economic rent.This means that:

• A)the demand curve for his talent is perfectly elastic.
• B)the supply curve for his talent is perfectly inelastic.
• C)the demand curve for his talent is downward-sloping.
• D)the supply curve for his talent is perfectly elastic.
• E)market equilibrium will be undefined.

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded in a market.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the point where supply equals demand in a market.

Roses

Flowers known for their beauty and aromatic qualities, often symbolizing love and affection in many cultures.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total welfare gains from trade.