Table 3-22 Assume That Zimbabwe and Portugal Can Switch Between Producing Toothbrushes

question 286

Multiple Choice

Table 3-22
Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate.
-Refer to Table 3-22. Zimbabwe's opportunity cost of one hairbrush is

• A)3/10 toothbrush and Portugal's opportunity cost of one hairbrush is 5/6 toothbrush.
• B)3/10 toothbrush and Portugal's opportunity cost of one hairbrush is 6/5 toothbrushes.
• C)10/3 toothbrushes and Portugal's opportunity cost of one hairbrush is 5/6 toothbrush.
• D)10/3 toothbrushes and Portugal's opportunity cost of one hairbrush is 6/5 toothbrushes.

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Definitions:

Degree of Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, providing insight into the good's price sensitivity.

Availability of Substitutes

The presence of alternative products or services that consumers can choose instead of the primary product, affecting the demand and price elasticity of goods.

Demand for Gasoline

The consumer's desire and willingness to pay for gasoline, influenced by its price, consumer income, and the prices of substitutes and complements.

Inelastic Demand

A market condition in which the demand for a product does not change significantly when its price increases or decreases.