If Elasticity Is the Same Everywhere Along the Curve and the Elasticity

question 132

Multiple Choice

If elasticity is the same everywhere along the curve and the elasticity value is unchanged,the demand curve _____

• A)is a linear demand curve.
• B)backward-bending curve.
• C)is a constant-elasticity demand curve.
• D)is a revenue curve.
• E)has a different elasticity value at each point along the curve.

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Definitions:

Utility Function

An economic model that describes how consumers rank different bundles of goods based on the levels of happiness or satisfaction they provide.

Initial Endowment

The initial set of assets, financial resources, or goods that an individual, institution, or economy possesses.

Utility Function

A mathematical representation that describes how consumers rank different bundles of goods according to the levels of satisfaction or utility those bundles provide.

Edgeworth Box

A diagram used in economics to show the distribution of resources and to find the optimal allocation for two individuals.