Suppose You Are Shown Two Intersecting Demand Curves That Are

question 97

Multiple Choice

Suppose you are shown two intersecting demand curves that are drawn on the same scale.At the point of intersection,one of the demand curves is steeper than the other.Which of the following could explain the difference in slopes?

• A)The steeper one has a higher income elasticity of demand.
• B)The steeper one is probably the demand curve for a luxury good.
• C)The steeper one applies for the short run whereas the flatter one applies for the long run.
• D)The flatter one is for a good with no close substitutes.
• E)It is not possible to compare the slopes of different demand curves.

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Definitions:

Compound

A chemical compound is a substance composed of two or more different elements that are chemically bonded together in a fixed ratio, distinguished by its chemical composition and properties.

Thiol Proton

The hydrogen atom attached to the sulfur atom in a thiol group, characterized by its ability to be acidic and participate in hydrogen bonding.

Acidity

A measure of the concentration of hydrogen ions in a solution, often associated with the degree to which a substance is able to donate a proton.

Phenol

An aromatic compound consisting of a benzene ring bonded to a hydroxyl group (-OH).