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Quiz: ACQ #4 selection × D A common feature of the fe l + //dominicanu.instructu

ID: 1138708 • Letter: Q

Question

Quiz: ACQ #4 selection × D A common feature of the fe l + //dominicanu.instructure.com/courses/924039/quizzes/1853150/take O less than the marginal benefit of another unit. O negative due to the external cost. Question 5 A common feature of the four market failure diagrams illustrated in the article is that O each has the social Marginal Benefit line lie above the Private Demand Curve fi.e. Private Marginal Benefit line) O each has the Social Marginal Cost line lie below the Private Marginal Cost Curve (le. Private Marginal Cost line). O each results from a missing pillar. O none has a wedge separating society's marginal benefit from society's marginal costs. Question 6 Suppose a monopolist faces the demand curve shown below. If you were to draw the monopolist's marginal revenue curve, it would: 70 s 60 50 30

Explanation / Answer

5. Article is missing.

11. % change in Q divided by % change in P

Elasticity of demand = % change in quantity demanded / % change in price

Elasticity of demand measures the responsiveness of change in quantity demanded when there is change in the price of commodity.