DrSocial Science Has Recently Figured Out How to Clone Consumers

question 54

Multiple Choice

Dr.Social Science has recently figured out how to clone consumers.His first effort was done on the population of Walla, Washington.Each original citizen got a clone who had exactly the same income and preferences.Which of the following statements describes what happened to the demand function for tuna-fish casseroles in Walla?

• A)The elasticity doubled and the slope remained constant.
• B)The elasticity did not change at any price.
• C)The elasticity of demand doubled and the slope doubled.
• D)The elasticity halved and the slope remained constant.
• E)none of the above.

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Definitions:

Total Cost

The complete cost of production, combining all costs of inputs and expenditures related to producing something, including direct, indirect, fixed, and variable costs.

Miles Driven

A measure often used in various contexts, such as accounting for vehicle costs, determining travel expenses, or evaluating performance in logistics and transportation.

Variable Costing

A costing method in which variable production costs are included in product costs, and fixed production costs are treated as period expenses.

Fixed Manufacturing Costs

Overheads or expenses that do not vary with the level of production or sales, such as salaries of permanent employees and rent of factory buildings.