Because of an increase in the price of leather, the price of a pair of women's dress shoes increased 12 percent. If the price elasticity of demand for women's dress shoes is 0.85, which of the following will happen?
A) Total expenditure on women's dress shoes decreases.
B) The number of pairs of women's dress shoes demanded decreases by 10.2 percent.
C) Total revenue from the sale of women's dress shoes decreases.
D) none of the above
B
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Use the following graph for a monopolistically competitive firm to answer the next question.
Point b indicates
A. the price-output combination that yields maximum profits. B. the lowest possible cost of the firm's product. C. a situation where the firm is earning economic profits. D. a point that cannot be the long-run equilibrium point.
An increase in the nominal interest rate leads to
A) a movement upward along the demand for money curve. B) a rightward shift in the demand for money curve. C) neither a shift in nor a movement along the demand for money curve. D) a movement downward along the demand for money curve. E) a leftward shift in the demand for money curve.
Explain why a freeway under certain circumstances may not be easily classified as a pure public good
What will be an ideal response?
If your income is $92,000 and you pay taxes of $19,475, what is your average tax rate? Show your work
What will be an ideal response?