The Internet Is Likely To

question 4

Multiple Choice

The Internet is likely to:

• A) Decrease price elasticity of demand because transactions are numerous and quick
• B) Have no impact on price elasticity of demand because few people do business on the Internet
• C) Increase price elasticity of demand because of the availability of substitute products
• D) Decrease price elasticity of demand because of the availability of complementary products

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Definitions:

Total Product Curve

A graphical representation in economics that shows the total quantity of output produced by a firm for varying quantities of a single input.

Variable Input

Inputs or resources whose usage varies with the level of production output, such as raw materials or labor.

Production Level

Refers to the total quantity of goods or services produced by a firm or industry during a specific period.

Marginal Returns

The additional output generated by adding one more unit of a specific input, while keeping other inputs constant.