Aluminum Cannot Be Produced Without Bauxite

question 363

Multiple Choice

Aluminum cannot be produced without bauxite. Hence, the price elasticity of demand for bauxite by aluminum manufacturers will be

• A) perfectly elastic.
• B) elastic.
• C) inelastic.
• D) unitary elastic.

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.

Money Income

The complete sum of financial gains accrued by a person or a family unit, encompassing earnings from employment, benefits, and returns on investments.

Demand Curve

A graph showing the relationship between the price of a product and the quantity of the product demanded at those prices.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, in contrast to a normal good where demand increases with an increase in consumers' income.