Johanna Taylor, a Developer at the Newly Established Leo Technologies

question 16

Multiple Choice

Johanna Taylor, a developer at the newly established Leo Technologies, is developing a Web site for the company. Which of the following phases is she working on if she is making decisions on increased bandwidth, size, and capacity issues which will help handle growing amounts of visits by clients and customers?

• A) testing
• B) design
• C) maintenance
• D) implementation

Understand the relationship between demand elasticity and expenditure on items, including luxuries versus necessities.

Understand the concept of cross-price elasticity of demand and how it influences consumer choices.

Comprehend the impact of income changes on demand elasticity for different products.

Interpret the significance of income elasticity of demand for various goods.

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Definitions:

Supply Shift

A change in the quantity of a good that suppliers are willing and able to sell at each price, represented by a shift of the supply curve to the left or right.

Producer Surplus

The difference between the amount a producer is willing to accept for a good and the actual amount received from its sale.

Price Ceiling

A legal maximum price that can be charged for a product or service, typically set to protect consumers.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive, usually measured above the supply curve up to the price level.