If the price of a slice of pizza falls, Tom can
A. buy more pizza with his paycheck.
B. buy fewer soft drinks with his paycheck.
C. no longer afford pizza on his paycheck.
D. Either A or B is possible.
Answer: A
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If a U.S. firm buys tulips from a Dutch firm and the Dutch firm uses the dollars it gets to buy U.S. stocks, the U.S. trade balance ________ and the U.S. financial account ________
A) rises; rises B) rises; falls C) falls; falls D) falls; rises
Price elasticity of demand is defined as
a. slope divided by price. b. percentage change in price divided by percentage change in quantity demanded. c. percentage change in quantity demanded divided by percentage change in price. d. the inverse of the price elasticity of supply.
When price is $6
A. there is a surplus.
B. there is a shortage.
C. there is both a surplus and a shortage.
D. there is neither a surplus nor a shortage.
Which market structure is characterized by a few interdependent firms?
A.) Monopolistic competition. B.) Oligopoly. C.) Monopoly. D.) Perfect competition.