Suppose you are given the following demand data for a product.PriceQuantity Demanded$1030940850760670The price elasticity of demand (based on the midpoint formula) when price decreases from $9 to $7 is
A. unit elastic.
B. inelastic.
C. elastic.
D. perfectly inelastic.
Answer: C
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Imperfect price discrimination occurs when a monopolist:
A. price discriminates but some buyers pay less than their reservation price. B. charges all buyers exactly their reservation price. C. price discriminates but some buyers pay more than their reservation price. D. charges a single price to all buyers.
Explain how a diversified portfolio can reduce fluctuations in returns even when the economy as a whole is experiencing contractions and expansions
A country has $40 billion of domestic investment and net capital outflows of -$20 billion. What is the country's saving?
a. -$60 billion b. -$20 billion c. $20 billion d. $60 billion
A Pigouvian subsidy
A. cannot exist with externalities. B. is the same thing as a Pigouvian tax. C. is measured in terms of Pigouvian dollars. D. moves production to the socially optimal level of output.