Suppose that 50 ice cream cones are demanded at a particular price. If the price of ice cream cones rises from that price by 4 percent, the number of ice cream cones demanded falls to 46 . Using the midpoint approach to calculate the price elasticity of demand, it follows that the
a. demand for ice cream cones in this price range is elastic.
b. demand for ice cream cones in this price range is inelastic.
c. demand for ice cream cones in this price range is unit elastic.
d. price elasticity of demand for ice cream cones in this price range is 0.
a
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If a U.S. company buys an electrical generator made in Japan by a Japanese firm, and the Japanese firm uses the payment to buy stocks issued by a U.S. company then
a. U.S. exports and U.S imports increase. b. U.S. exports but not U.S. imports increase. c. U.S. imports but not U.S. exports increase. d. neither U.S. exports nor U.S. imports increase.
A person buys a newly issued bond that matures in 6 years with a face value of $1,000 and a coupon rate of 5%. How much money will the bondholder receive in the sixth year?
A) $1,050. B) $1,500. C) $1,000. D) $50. E) $500
iTunes charges British customers 20 percent more than customers in France and Germany. Apple defended the price difference, saying that the "underlying economic model in each country has an impact on how we price our track downloads." An economist would say that Apple is engaged in:
A. monopolistic competition. B. price discrimination. C. collusion. D. reverse engineering.
Under private enterprise, production is guided by _____________________________.
Fill in the blank(s) with the appropriate word(s).