The Figure Given Below Shows the Demand Curves for Five

question 37

Multiple Choice

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-In the opinion of many consumers, there are few, if any, substitutes for the popular search engine Google. If Google were to charge consumers for its services, it would face:

• A)a relatively inelastic demand curve.
• B)a relatively elastic demand curve.
• C)a negative income elasticity of demand.
• D)a positive cross elasticity of demand.
• E)a perfectly elastic demand curve.

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Definitions:

Closed Economy

An economic system that does not interact with other economies in terms of trade, investment, or migration, relying entirely on its own resources.

Certificate of Indebtedness

A type of financial instrument indicating the holder is owed a debt by the issuer, typically with terms specifying the repayment of the principal and interest.

Bonds

Debt securities issued by entities such as governments or corporations to raise capital, promising to repay the principal along with interest at a future date.

Private Saving

The portion of households' income that is not consumed or paid in taxes, and is instead saved.