Figure 9-17 -Refer to Figure 9-17.What Is the Allocatively Efficient Output for Efficient

question 127

Multiple Choice

Figure 9-17
-Refer to Figure 9-17.What is the allocatively efficient output for the firm represented in the diagram?

• A) Qf units
• B) Qg units
• C) Qh units
• D) Qj units

---

Definitions:

Income Elasticity

A measure of how much the quantity demanded of a good responds to a change in consumers' income.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

Substitution Price Elasticity

A measure of how much the quantity demanded of one good responds to a change in the price of another good, indicating the degree to which these goods are substitutes.

Utility Function

A numerical model that explains how a consumer gains pleasure or usefulness from using goods and services.