Reading Comprehension: Detail Questions
Which of the following is stated in the passage about basic economic models?
Incorrect.
[[snippet]]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.
