Assume That a Market Demand Curve Is Constructed from Twenty

question 24

Multiple Choice

Assume that a market demand curve is constructed from twenty identical individual demand curves.Assume also that at a price of $10,the elasticity of individual demand is 0.5.Then,at this price,the elasticity of the market demand curve derived from these individual demand curves must be:

• A)5
• B)any value more than 5.0.
• C)any value less than 5.0.
• D)0.5.

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Definitions:

Economic Interests

The motivations and priorities related to wealth, resources, and financial gains of individuals or organizations.

Political Power

The ability or capacity of a person or group to influence or control the direction of affairs within a government or organization.

Residential Sections

Areas within a city or town designated for housing and living purposes, often distinguished by types of homes, socio-economic status, and community characteristics.

Louisville

A city in the U.S. state of Kentucky, known for the Kentucky Derby horse race and as the birthplace of the famous boxer Muhammad Ali.