(Table: Factor Use in Trade) in the Hypothetical Economy Provided

question 35

Multiple Choice

(Table: Factor Use in Trade) In the hypothetical economy provided in the table, what is the capital-labor ratio for imports?

• A) $31,250
• B) $21,500
• C) $1,600
• D) $3,125

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Definitions:

Unit Elastic

A situation in economics where a change in the price of a good or service results in a proportional change in the quantity demanded or supplied.

Very Inelastic

Describes a situation where the demand or supply for a good or service is minimally responsive to changes in price.

Very Elastic

Refers to a situation in which the demand or supply for a product changes significantly in response to price changes, indicating high sensitivity.

Elastic Demand Curve

A demand curve characterized by a high sensitivity of quantity demanded to changes in price, indicating that a small price change results in a large change in quantity demanded.