The own-price elasticity of demand is defined as:
a. the ratio of a change in quantity demanded and the change in price.
b. the ratio of the percentage change in quantity demanded to the percentage change in price.
c. the ratio of the percentage change in quantity demanded to the percentage change in input prices.
d. the ratio of a change in output and the change in input usage.
B
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If a tax of $1 a can is imposed on the buyers of sugary drinks, the demand for sugary drinks ______ and the price that buyers pay ______
A. doesn't change; doesn't change B. doesn't change; rises by $1 a can C. decreases; rises by more than $1 a can D. decreases; rises by less than $1 a can
If the company plans to produce 9 units, which technology should the firm choose?
a. Technology A b. Technology B c. Either technology because they are equally cost efficient d. Need more information
Suppose your best friend's birthday is next week and you are willing to pay $300 for a gift of Rollerblades, but you found them on sale for $200 at Sportsmart. Lucky? Yes. Your consumer surplus is
a. $300 b. $600 c. $100 d. $200 e. $500
If the real interest rate rises, the quantity of investment demanded:
A. will fall. B. will not change. C. will rise. D. could rise or fall.