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Unformatted text preview: ncome always increases at a rate of 3.2 percent
as price increases, consumers are likely to buy 3.2 times as many cars If the price of apples is $5 and the price of bread is $3, then the marginal rate of transformation
of apples for bread is
Consider the following demand curve for neckties: Q = 500 – 15P. If P = 10, then the elasticity
of demand is
The reason that the total product function (TP) may increase at an increasing rate is
o The firm earns more profits at higher levels of output
o Specialization and division of labour
o Costs de...
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This document was uploaded on 01/25/2014.
- Winter '14