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Practice Problems
Practice Problems
20
A
100 Q
In the figure above, which comparison of the PED on demand curves A and
B is correct?
a. At P = 20 and Q = 100, demand is more elastic on curve A than curve B.
b. At P = 20 and Q = 100, demand is less elastic on curve A than curve B.
c. At P = 20 and Q = 100, PED is same for both the curves.
d. More information is required.
9/18/2019
The curve below shows the market demand curve for apples in India. If OP1 is the
original equilibrium price, a decrease in price to OP2 could have been caused by a
decrease in:
P1
P2
9/18/2019
O DEMAND CURVE Quantity
Suppose that a market basket of two goods is changed by adding
more of one of the goods and subtracting one unit of the other.
The consumer will:
a. Increases
b. Decreases
c. Stays the same
d. Changes in a way that cannot be determined
Q) If a consumer is always indifferent between an additional
one grapefruit or an additional two oranges, then when
oranges are on the horizontal axis the indifference curves: