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Which of the following is stated in the passage about basic economic models?

Incorrect.

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The passage states that basic economic models are not true in all economic situations, including - but not limited to - price elasticity of demand. In other words, there may be other cases in which the basic economic models are inapplicable.

Incorrect.

[[snippet]]

The passage states that basic economic models do not hold true in all economic scenarios but does call them invalid.

Incorrect.

[[snippet]]

The passage tells us that the opposite is true:

demand (number of consumers)

is a function of (i.e., is determined by)

price
(cost to the consumer).

Incorrect.

[[snippet]]

Even though we know that basic economic models do not hold in every situation, the passage states that they see demand as a function of price - there is no reference to cases in which such models do not follow this rule.

Good job!

[[snippet]]

The passage explicitly states that demand is a function of (i.e., is determined by) price.

Basic economic models are invalid because they do not hold true in all economic scenarios.
Basic economic models predict that the cost of a product to the consumer determines the number of consumers for that product.
Basic economic models do not always propose a link between price and demand.
Basic economic models predict that the cost of a product to the consumer is a function of the number of consumers for that product.
The prediction of basic economic models that demand for a product is a function of the cost to the consumer is only inapplicable to price elasticity of demand.