Refer to Table 3-2. The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market. If the price of caviar falls from 45 to 35, the market quantity demanded would
A) increase by 50 oz. B) decrease by 50 oz. C) decrease by 70 oz. D) increase by 70 oz.
Question 2
If at a price of 50, Ghani sells 20 hand-made leather cell-phone covers but at a price of 60, zero units are sold. Based on this information, the demand for his cell-phone covers is
A) elastic or perfectly elastic. B) unit elastic.
C) perfectly inelastic. D) elastic or perfectly inelastic.
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Construct a Lorenz curve that shows income distribution in this society.
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