Asked by Ashreet Dhiman on Jul 26, 2024
Verified
Dr.Social Science has recently figured out how to clone consumers.His first effort was done on the population of Walla, Washington.Each original citizen got a clone who had exactly the same income and preferences.Which of the following statements describes what happened to the demand function for tuna-fish casseroles in Walla?
A) The elasticity doubled and the slope remained constant.
B) The elasticity did not change at any price.
C) The elasticity of demand doubled and the slope doubled.
D) The elasticity halved and the slope remained constant.
E) none of the above.
Demand Function
A mathematical expression that shows the relationship between the quantity demanded of a good and its price, holding other factors constant.
Elasticity
A measure of how much the quantity demanded or supplied of a good responds to a change in price or other economic variables.
- Comprehend the consolidation of personal demand curves to form aggregate market demand.
- Understand the real-life applications of elasticity measurements.
Verified Answer
PS
Paulette SivelsaintJul 29, 2024
Final Answer :
B
Explanation :
Since the clones have the same income and preferences as the original citizens, the demand function for tuna-fish casseroles would not change. Therefore, the elasticity of demand would not change at any price.
Learning Objectives
- Comprehend the consolidation of personal demand curves to form aggregate market demand.
- Understand the real-life applications of elasticity measurements.