A 10 percent increase in the price of wireless earbuds leads to a 5 percent decrease in the quantity demanded of wireless earbuds. The absolute price elasticity of demand is
A. 2.
B. 0.33.
C. 3.
D. 0.5.
Answer: D
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Consider a perfectly competitive industry in a long-run equilibrium. If a single firm in that industry discovers a significant cost-saving production technology, then:
A. the firm will earn an economic profit in the long run. B. the rest of the industry will quickly adopt the new technology. C. all firms in the market will earn an economic profit in the short run. D. all the firms in the market will earn an economic profit in the long run.
Last year in Candamica, consumption expenditure was $20 billion, interest, rent, and profit were $2.5 billion, government expenditure on goods and services was $7 billion,
net exports of goods and services was $5 billion, and investment was $2 billion. Hence total expenditure was A) $24.5 billion. B) $34.5 billion. C) $36.5 billion. D) $34 billion. E) undetermined without information about imports.
The above figure depicts an economy with a short-run equilibrium
A) at full employment. B) below full employment. C) at higher than full employment. D) at zero unemployment
Unions often face a tradeoff between higher wage rates and employment
Indicate whether the statement is true or false