A good with a price elasticity of demand equal to .75 is described as price-inelastic.
Answer the following statement true (T) or false (F)
True
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If the country of Deficitland is experiencing trade deficits, they are more likely to cut imports of
a. beef b. cocoa c. coffee d. capital goods e. soybeans
Refer to Exhibit 1-1. If the student whose study habits are illustrated here is currently studying for the 2nd hour she should
A) cut back on the number of hours she is studying because the marginal benefit of studying for the 2nd hour is less than the marginal cost of doing so. B) cut back on the number of hours she is studying because the marginal benefit of studying for the 2nd hour is greater than the marginal cost of doing so. C) increase the number of hours she is studying because the marginal benefit of studying for the 2nd hour is less than the marginal cost of doing so. D) increase the number of hours she is studying because the marginal benefit of studying for the 2ndhour is greater than the marginal cost of doing so.
When Taylor raised the price of earrings at Taylor's Boutique, her total revenue from selling earrings increased. This suggests that:
A. there was excess demand for earrings at the original price. B. the demand for Taylor's earrings at the original price was inelastic. C. the demand for Taylor's earrings at the original price was elastic. D. there are many other boutiques competing with Taylor.
If you own a share of stock in a company and the risk associated with its business rises you would expect
A. a bubble. B. a capital loss. C. a higher dividend. D. a capital gain.