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:

Compete Effectively

The ability of a company or entity to develop and implement strategies that secure an advantage over its competitors in a market.

Low-Opportunity Cost Producer

An individual or company that can produce goods or services at a lower opportunity cost than competitors.

High Opportunity Cost

The significant loss of potential gain from other alternatives when one option is chosen.

International Trade

The transfer of commodities, services, and finance across the borders or territories of various nations.