Refer to the scenario above. Instead of the price increase, if there is a fall in price from $6 to $4, the absolute value of Gary's arc elasticity of demand for shirts is:
A) 1.2.
B) 2.14.
C) 4.
D) 5.
B
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Under U.S. commercial policy, the escape clause results in
A) temporary quotas granted to firms injured by import competition. B) tariffs that offset export subsidies granted to foreign producers. C) a refusal of the U.S. to extradite anyone who escaped political oppression. D) tax advantages extended to minority-owned exporting firms. E) tariff advantages extended to certain Caribbean countries in the U.S. market.
An increase in net working capital required at the beginning of an expansion project must be considered to be
A) a cash inflow. B) a reallocation of assets. C) a cash outflow. D) None of the above
At the federal level, the single most important tax, accounting for slightly less than half of revenue, is the
a. corporate income tax b. personal income tax c. estate tax d. property tax e. sales tax
Any point on the budget constraint
A. Reflects the price of one good divided by the price of another good. B. Represent a combination of two goods that are affordable. C. Gives the consumer the highest level of utility. D. Represents combinations of two goods that yield the same utility.