Author Question: At the midpoint of a downward sloping straight-line demand curve, the demand A) is elastic. B) ... (Read 83 times)

BRWH · **on:** Jun 29, 2018

At the midpoint of a downward sloping straight-line demand curve, the demand

A) is elastic.
B) is unit elastic.
C) is inelastic.
D) has an elasticity exactly equal to zero.

Question 2

When the Smiths were shopping for their present home, the asking price from the previous owner was 250,000.00. The Smiths had decided they would pay no more than 245,000.00 for the house.

After negotiations, the Smiths actually purchased the house for 239,000.00. They, therefore, enjoyed a consumer surplus of A) 239,000.00.
B) 5,000.00.
C) 6,000.00.
D) 11,000.00.