Suppose a Firm in Each of the Two Markets Listed

question 535

Multiple Choice

Suppose a firm in each of the two markets listed below were to increase its price by 15 percent. In which pair would the firm in the first market listed experience a dramatic decline in sales, but the firm in the second market listed would not?

• A)cotton and soybeans
• B)gasoline and corn
• C)#2 lead pencils and college textbooks
• D)electricity and cable television

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Definitions:

Arteries

Blood vessels that carry oxygen-rich blood away from the heart to the rest of the body.

Cusps

Pointed or elevated features, particularly in anatomy and dentistry, such as the peaks on molars or valves in the heart.

Right Atrium

The right upper chamber of the heart that receives deoxygenated blood from the body through the venae cavae and pumps it into the right ventricle.

Right Ventricle

The chamber of the heart that pumps deoxygenated blood to the lungs for oxygenation.