What Is the Correct Constraint for Node 2 in the Following

question 12

Multiple Choice

What is the correct constraint for node 2 in the following diagram?

• A)X₁₂ + X₂₃ = 100
• B)X₁₂ − X₂₃ ≤ 100
• C)−X₁₂ + X₂₃ ≥ −100
• D)X₁₂ − X₂₃ ≥ 100

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Definitions:

Elastic

Refers to the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good consumers are willing to buy at various prices.

Monopolistic Competitors

Firms in a market structure where there are many producers selling products that are similar but not identical, allowing for a degree of market power and some control over prices.

Perfect Price Discrimination

A pricing strategy where a seller charges the maximum possible price for each unit consumed that the buyer is willing to pay, capturing all available consumer surplus.