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answer as 1 and 2 please Figure 7-2 depicts a demand curve with a price elastici

ID: 1177699 • Letter: A

Question

answer as 1 and 2 please

Figure 7-2 depicts a demand curve with a price elasticity that is perfectly elastic, implying that as much as can be supplied will be purchased at the market price. relatively inelastic, implying that a percent increase in price results in a smaller percent reduction in sales. unitary, implying that a percent change in pnce leads to an equal percent change in quantity demanded. perfectly inelastic, implying that the same amount will be purchased regardless of the price of the good. Figure 4-25 Refer to Figure 4-25. The benefit to the government is measured by tax revenue and is represented by area A + B. measured by tax revenue and is represented by area B + D. measured by the net gain in total surplus and is represented by area B + D. measured by the net gain in total surplus and is represented by area D + E.

Explanation / Answer

1.D

2.B