Figure 53 t Price C Quantity 142 Refer to Figure 53 The dema

Figure 5-3 t Price -C Quantity 142. Refer to Figure 5-3. The demand curve representing the demand for a luxury good with several close substitutes is a.?. 143. Refer to Figure 5-3. Mark says he would buy one Mt. Dew per day regardless of the price. If this is true then Mark\'s demand for Mt. Dew is represented by demand curve a.?. b.?. ?.?. 144. Refer to Figure 5-3. Which demand curve is perfectly elastic? a. A b. B ?.? d. D 145. Refer to Figure 5-3. Which demand curve is perfectly inelastic? a. A b. B ?.? d. D

Solution

142 c) C - Very Elastic

If the price increases, buyers switch to other products. This is not a steep curve. It is shallow.

143 a) A

This is the demand curve for goods that are necessities

144 d) D

Perfectly elastic - Straight horizontal line

Market demand is tied to the price. The demand is infinite at a specific price. Change in price eliminates the demand for the product.

145 a) A

Perfectly inelastic

It is a vertical line. The quantity demanded does not change if the price changes.