Use the data in the table below to answer the following question.PriceQuantity Demanded$201218171620142412301036840644448The price elasticity of demand (based on the midpoint formula) when price decreases from $8 to $6 is
A. elastic.
B. unit elastic.
C. inelastic.
D. perfectly elastic.
Answer: C
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Compared to the world, the rate of U.S. population growth is
A) slower than in the world as a whole. B) about the same as in the world as a whole. C) much faster than in the world as a whole. D) incomparable because U.S. residents are born with a much greater chance of accumulating a lot of human capital. E) incomparable because we do not have accurate world population statistics.
In the short run, the firm makes zero economic profit when the price is ________ minimum average total cost, makes an economic profit when the price is ________ minimum average total cost, and incurs an economic loss when the price is ________
minimum average total cost. A) equal to; higher than; lower than B) equal to; lower than; higher than C) higher than; equal to; lower than D) lower than; equal to; higher than
The price charged by a perfectly competitive firm is determined by
a. each individual firm b. a group of firms acting together as a cartel c. market demand and market supply d. the firm's total costs alone e. the firm's average variable cost
How does the demand curve facing a home monopolist compare in a no-trade situation to a situation in which a quota protects the monopolist's output?
a. They are identical. b. The quota-protected demand curve lies to the right of the no-trade demand curve. c. The quota-protected demand curve lies to the left of the no-trade demand curve. d. The no-trade demand curve is perfectly price elastic at the world price; the quota-protected demand curve has a negative slope.