Author Question: An economic survey observed that a 20 percent cut in the price of a certain line of women's ... (Read 39 times)

kellyjaisingh · **on:** Jun 30, 2018

An economic survey observed that a 20 percent cut in the price of a certain line of women's clothing, almost doubled the quantity demanded of the clothing. This led economists to conclude that the demand for this line of clothing is _____.
a. highly elastic
b. highly inelastic
c. unit-elastic
d. perfectly elastic
e. perfectly inelastic

Question 2

A consumer's indifference curve shows:
a. all the commodity bundles a consumer can afford.
b. only commodity bundles that maximize utility.
c. the equilibrium commodity bundles.
d. various combinations of goods that yield the same level of total utility to this consumer.