When the price of hamburgers is $3.50, consumers buy 1100 hamburgers. When the price is $4.50, consumers buy 900. What is the price elasticity of demand in this range? (Use arc elasticity.)
a. 0.8
b. 200
c. 1.25
d. 0.005
e. none of the above
a. 0.8
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The set of all baskets of inputs that can be employed at a given cost defines a(n)
a. isoquant curve. b. isocost curve. c. expansion path. d. production function exhibiting constant returns to scale.
According to the Coase approach, to achieve socially optimal outcome, two sides must bargain. The bargaining might not be successful because
A) transaction costs are ignorable. B) firms engage in strategic bargaining. C) both sides have perfect information. D) None of the above.
If we wanted to describe unemployment in terms of supply and demand, we could say:
A. the quantity of those demanding labor is greater than those supplying labor. B. there is a surplus of labor. C. at the prevailing wage, the demand is greater than the supply of labor. D. All of these are true.
According to the textbook application
a. drinking water aboard commercial aircraft is completely unregulated b. aircraft drinking water supplies are controlled jointly by the Food and Drug Administration (FDA) and the Federal Aviation Administration (FAA) c. random testing of aircraft drinking water in 2004 indicated that no harmful contaminants were present d. none of the above