John Spends Exactly the Same Dollar Amount on Candy Bars

question 193

Multiple Choice

John spends exactly the same dollar amount on candy bars each week,regardless of their price.John's demand curve for candy bars is _____

• A)downward-sloping.
• B)backward-bending.
• C)perfectly inelastic.
• D)perfectly elastic.
• E)unit elastic.

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Definitions:

Diminishing Marginal Returns

A principle in economics that indicates a decreasing level of incremental output for each additional unit of input, after a certain point.

Total Product

The aggregate quantity of output produced by an economic unit from a given set of inputs during a specific period of time.

Variable Cost

Costs that change in direct proportion to changes in a firm’s level of production.