When the percentage change in the quantity demanded equals the percentage change in price, then demand is
A) inelastic.
B) unit elastic.
C) elastic.
D) irrelevant.
E) undefined.
B
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The above figure shows the demand curve for movie rentals from Redbox. If Redbox lowered its price from $1.50 to $1.00, then total revenue would ________ because demand is ________
A) decrease; elastic B) increase; elastic C) decrease; inelastic D) increase; inelastic
What is the primary objective of the Financial Stability Oversight Council?
What will be an ideal response?
The above figure shows the market for rice in Japan. SDomestic represents the domestic supply curve, and Sworld represents the world supply curve. If imported rice is banned, the consumption distortion loss is equal to
A) a + b + c + d. B) a + b + c + d + f + g. C) f + g. D) a + c + f + g.
One key assumption lying behind the policy irrelevance proposition is that
A) wages are "sticky" downward. B) prices are "sticky" upward. C) the rational expectations hypothesis is correct. D) markets are not purely competitive.