Price Elasticities Are Calculated for Four Goods, and the Values

question 229

Multiple Choice

Price elasticities are calculated for four goods, and the values are: 4.1; 3.7; 1.0; 0.002. Which price elasticity is most elastic?

• A) 4.1
• B) 3.7
• C) 1.0
• D) 0.002

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Definitions:

Marginal Benefit Curve

A graphical representation showing how the benefit to consumers changes as the quantity of a good consumed increases.

Society's Welfare

Refers to the overall well-being and quality of life of the people in a community, including factors like health, economic stability, and social relationships.

Marginal Social Benefit

the additional benefit to society as a whole from consuming one more unit of a good or service.

Marginal Social Cost

The additional cost imposed on society as a whole by producing one more unit of a good or service.