When is demand said to be inelastic?
a) if the quantity demanded changes only slightly when the price of the good changes
b) if demand shifts only slightly when the price of the good changes
c) if buyers respond substantially to changes in the price of the good
d) if the price of the good responds only slightly to changes in demand
Ans: a) if the quantity demanded changes only slightly when the price of the good changes
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A Nash equilibrium occurs
A) when each player acts without considering the actions of the other player. B) when each player takes the best possible action given the action of the other player. C) only when players use the tit-for-tat strategy. D) only when the game is played in Nashville, Tennessee. E) when each player takes the action that makes the combined payoff for all players as large as possible.
Use the above table. Assuming constant opportunity costs, the opportunity cost of producing a pound of beef in Argentina is
A) 2 gallons of wine. B) 3 gallons of wine. C) 0.5 gallons of wine. D) 0.33 gallons of wine.
When a loan is repaid to a bank, the money supply contracts by the amount of the loan
Indicate whether the statement is true or false
In the early 1990s, before pay at the pump was an option, a gas station decides to force people to pre-pay due to drive-offs. The opportunity cost of this decision may include:
A. the value of the gas that is no longer stolen by people who drove off. B. not having to look outside for people waving at you to turn on the pump. C. a loss of snack sales because people decide to come into the store to pay for gas before pumping versus after pumping their gas. D. lost revenue when people under estimate what they think their gas tanks will hold in order to avoid going back into the store to get change from overpayment.