A demand curve to remain unit elastic along its entire length should
A. cross the X axis.
B. touch the X axis but not the Y axis.
C. never touch either the X or the Y axis.
D. touch the Y axis but not the X axis.
Answer: C
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Which of the following is true for the developing countries that moved most rapidly toward economic freedom during 1980-2005 period?
What will be an ideal response?
Suppose Island Bikes, a profit-maximizing firm, is the only bike rental company in a small resort town. The marginal cost to Island Bikes of renting out a bike is $3, and Island Bikes has no fixed costs. Each day Island Bikes has six potential customers, whose reservation prices are listed in the table. CustomerReservation Price($/Rental)A22B16C12D8E6F4What is the socially optimal number of bikes for Island Bikes to rent out each day?
A. 5 B. 3 C. 6 D. 4
In a two-sided market, an intermediary firm that links groups of producers and consumers is called
A. a platform. B. an oligopoly. C. an end user. D. an operator.
Refer to the information provided in Figure 3.2 below to answer the question(s) that follow.
Figure 3.2Refer to Figure 3.2. Which of the following would be most likely to cause the demand for macaroni and cheese to shift from D1 to D0?
A. an increase in the price of flour used to make macaroni and cheese B. an increase in income, assuming macaroni and cheese is a normal good C. an increase in the price of macaroni and cheese D. an increase in the quantity demanded for macaroni and cheese