Refer to Table 3.1 to answer the following questionTable 3.1 Individual Demand and Supply SchedulesQuantity Demanded byPriceAlejandroBenCarlMarket$8.00842________6.001244________4.002046________2.002246________Quantity Supplied byPriceAveryBrandonCassandra $8.006046________$6.004244________$4.002442________$2.00640________In Table 3.1, if government held the price at $3,
A. There would be a shortage.
B. The government would be setting an effective price floor.
C. The shortage would be the same as the quantity demanded.
D. The market would be in equilibrium.
Answer: A
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In the figure above, using the midpoint method, the price elasticity of demand when the price falls from $6 to $5 is equal to
A) 2.50. B) 1.63. C) 1.10. D) 0.91. E) 1.00.
Suppose Renee can increase her total utility from consuming video rentals and books by buying one more book and renting one fewer video. Which of the following is true?
A) The marginal utility of video rentals is negative. B) The marginal utility of the last book consumed exceeds the marginal utility of the last video rental consumed. C) The marginal utility of the last video rental consumed exceeds the marginal utility of the last book consumed. D) The marginal utility per dollar spent on books exceeds that of video rentals.
A firm that successfully differentiates its product or lowers its average cost of production creates
A) a perfectly inelastic demand curve for its product. B) value for its customers. C) entry barriers into its market. D) economies of scale.
A government program that attempts to stimulate growth in the production of goods in which the country has a potential future comparative advantage is an example of a(n) ________ policy
A) primary-export-led B) import-substitution development C) outward-looking development D) linkage-effect