Table 2-13 Table 2-13 Shows the Output Per Day of Day

question 230

Multiple Choice

Table 2-13
Table 2-13 shows the output per day of two pet groomers, Tammi and Horace. They can either devote their time to grooming dogs or bathing cats.
-Refer to Table 2-13. What is Tammi's opportunity cost of bathing a cat?

• A) half a groomed dog
• B) two groomed dogs
• C) two-thirds of a groomed dog
• D) one and a half groomed dogs

---

Definitions:

Quasilinear Utility

A utility function where one good (usually money) enters linearly and therefore preferences for other goods are independent of the amount of money.

Price Elasticity

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

Income Elasticity

A measure of how much the demand for a good or service changes in response to changes in the consumer's income.

Inverse Demand Function

A function that represents the price of a good as a function of the quantity demanded.