Ans: D) inelastic.
When the calculated price elasticity of demand is -0.45, demand is
A) perfectly inelastic.
B) elastic.
C) unit-elastic.
D) inelastic.
Economics
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Price controls:
a. are always popular with consumers because they lower prices. b. create shortages. c. increase producer surplus because firms can now sell a greater quantity of a good at a lower price. d. are necessary to preserve equity.
Economics
Assuming that oligopolists do not have the opportunity to collude, once they have reached the Nash equilibrium, it
a. is always in their best interest to supply more to the market. b. is always in their best interest to supply less to the market. c. is always in their best interest to leave their quantities supplied unchanged. d. may be in their best interest to do any of the above, depending on market conditions.
Economics
Use the figure below to answer the following question.
If a price floor in this market is set at P2, then consumer surplus equals area
A. a + b + d. B. b. C. a. D. a + b.
Economics
Related to the Economics in Practice on page 4: Economists estimate that over one's lifetime, a college degree holder will earn on average ________ someone with only a high school degree.
A. three times as much as B. 27 percent more than C. almost 70 percent more than D. about 15 percent more than
Economics