Question 41

A straight-line, negatively-sloped demand curve has which of the following properties?

Question 41 options:

a)	constant slope and varying elasticity

b)	varying slope and constant elasticity

c)	constant slope and constant elasticity

d)	varying slope and varying elasticity

Question 42

If income increases and the quantity of lobster demanded also increases, one can conclude that:

Question 42 options:

a)	lobster is a normal good.

b)	lobster is an inferior good.

c)	lobster and income are complementary goods.

d)	the income elasticity for lobster is negative.

Question 43

In general, the longer the time horizon that we are considering:

Question 43 options:

a)	the more elastic demand will be.

b)	the more inelastic demand will be.

c)	the more unit elastic demand will be.

d)	the more upward-sloping demand will be.

Question 44

Your neighbor is mowing her lawn one afternoon when she stops to have some lemonade. She drinks one glass and is considering having a second glass. This is an example of:

Question 44 options:

a)	equilibrium analysis.

b)	marginal analysis.

c)	cost analysis.

d)	benefit analysis.

Question 45

Diminishing marginal utility occurs with increasing total utility.

Question 45 options:

	True
	False