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If Matt's total utility from consuming bratwurst increased at a constant rate, no matter how many bratwurst Matt consumed, what would Matt's demand curve for bratwurst look like?:

a) Perfectly elastic
b) Perfectly inelastic
c) Linear
d) Exponential

User BobbyScon
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Final answer:

Matt's demand curve for bratwurst would look horizontal, signifying a perfectly elastic demand curve, where any quantity would be demanded at a specific price, with infinite responsiveness to price changes.

Step-by-step explanation:

If Matt's total utility from consuming bratwurst increased at a constant rate, no matter how many bratwursts he consumed, this would suggest that he places a consistent additional value on each additional unit consumed. In economic terms, this scenario reflects infinite or perfect elasticity.

Thus, Matt's demand curve for bratwurst would be horizontal, indicating a perfectly elastic demand curve. In this situation, Matt would be willing to consume any quantity of bratwurst at a specific price, and his quantity demanded would become highly responsive to price changes, shifting drastically for even a minuscule change in price.

According to the concept of perfect elasticity, Matt's demand curve for bratwurst would be horizontal, which means that if the price were set at a particular point P, he would theoretically consume an infinite quantity at that price, but zero if the price increased even slightly. The demand curve's infinite responsiveness to price changes illustrates the nature of a perfectly elastic demand scenario. This phenomenon is exemplified in situations where goods have readily available inputs or many close substitutes.

User Jolyn
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