Ethan Paid $3 for a Bottle of ThirstAid

question 8

Multiple Choice

Ethan paid $3 for a bottle of ThirstAid.Later while on a hiking trip,she was offered $8 for the ThirstAid.Select the correct statement from the following:

• A) The $8 offer is not relevant if Ethan refuses to sell the ThirstAid.
• B) If Ethan drinks the ThirstAid,no opportunity cost is associated with his decision.
• C) The $3 original purchase price is irrelevant to his decision to sell the ThirstAid.
• D) All of the above.

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Definitions:

Employment Decline

A situation where the number of employed individuals in an economy decreases, often due to economic downturns, technological changes, or structural shifts in the economy.

Labor Demand Curve

A graphical representation that shows the quantity of labor that employers are willing to hire at different wage rates.

Unit-elastic

A situation in which the percentage change in quantity demanded is equal to the percentage change in price, resulting in no change in total revenue.

Elasticity of Labor Demand

A measure of how the quantity of labor demanded by employers changes in response to a change in wages or salary levels.