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:

Commodity Consumption

The process of purchasing and using goods and services that are available in the market.

Production

The process of creating goods and services through the combinatioN. of human labor, materials, and technology.

Biomedicine Technologies

Refers to tools, devices, and procedures developed within the field of biomedicine for diagnosing, treating, and preventing diseases.

Contemporary Capitalism

Refers to the current phase of capitalism characterized by global trade, advanced information technology, and a dominant service sector.