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Question
Table 16-2| Quantity Demanded in Middle Fall (tubes per week) | Price per Tube | Quantity Demanded in West Fall (tubes per week) | Price per Tube |
| 1 | $8 | 1 | $5.00 |
| 2 | 7 | 2 | 4.50 |
| 3 | 6 | 3 | 4.00 |
| 4 | 5 | 4 | 3.50 |
| 5 | 4 | 5 | 3.00 |
Neem Products sells its Ayurvedic Neem toothpaste in two completely isolated markets with demand schedules as shown in Table 16-2. The average cost of production is constant at $2 per tube.
Refer to Table 16-2. Which of the following statements is trueabout the two markets?
A) The demand in Middle Fall is more price elastic than the demand in West Fall.
B) The demand in Middle Fall is less price elastic than the demand in West Fall.
C) The demand in Middle Fall is more income elastic than the demand in West Fall.
D) The demand in Middle Fall is less income elastic than the demand in West Fall.
Answer
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B) the relative input prices.
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Which of the following would be categorized as an opportunity cost?
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b. the cost of purchasing supplies for your house-cleaning business
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A) a only
B) a and c only
C) b and c only
D) all of the above