Refer to the scenario above. Thomas's arc elasticity of demand for wine is:
A) -0.33.
B) -0.67.
C) -0.25.
D) -1.
D
You might also like to view...
Suppose that U.S. tastes for British goods increase. Then, in Figure 9-3
a. the supply curve shifts from S1 to S2 b. the supply curve shifts from S2 to S1 c. the demand curve shifts from D2 to D1 d. the demand curve shifts from D1 to D2 e. both demand and supply shift to the right
In which type of contract is the agent paid per unit of output?
A) A commission based contract. B) A sharecropping contract. C) A piece rate contract. D) A contract with stock options as salary.
The profit-maximizing rule of production is to produce the level of output where price is equal to marginal cost. Since the marginal cost (MC) curve is U-shaped, the price line running horizontal to the X-axis intersects the MC curve at two points. How is the profit maximization rule applied in this case?
New technologies may reduce oligopoly power by
a. increasing the minimum efficient scale b. raising barriers to entry c. raising prices and lowering output d. reducing barriers to entry e. reducing the choices available to consumers in the market