Which of the following describes a situation in which demand must be elastic?
a. Total revenue increases by 15 percent when the price of corndogs rises by 15 percent.
b. Total revenue increases by less than 15 percent when the price of corndogs rises by 15 percent.
c. Total revenue decreases by more than 15 percent when the price of corndogs rises by 15 percent.
d. Total revenue increases by $15 when the price of corndogs rises by $15.
e. Total revenue increases by more than $15 when the price of corndogs rises by $15.
C
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Netflix is the largest online DVD rental service offering flat rate online streaming to customers in the United States. Currently, there are approximately 8 million subscribers
Suppose Netflix decreases its flat rate rental by 10 percent and an additional 1 million people subscribe. This information means that Netflix's demand is A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic.
Increasing GDP generally causes increases in problems of waste disposal.
Answer the following statement true (T) or false (F)
Which of the following statements is false?
A) Economists who advocate discretionary monetary policy argue that it is more likely to achieve the desired economic results because the monetary authority has the flexibility to shape the best monetary policy to the existing circumstances. B) Here is an example of zero crowding out: The government spends $100 more and the private sector doesn't spend any less. C) Here is an example of complete crowding out: The government spends $100 more and the private sector spends $100 less. D) Not all economists believe that rule-based monetary policy is preferable to discretionary monetary policy. E) none of the above
The income elasticity of demand for low-quality beef is -2. Thus, a 5% increase in the quantity of low-quality beef demanded
A. is the result of a decrease in income of 10%. B. is the result of a decrease in income of 2.5%. C. is the result of an increase in income of 2.5%. D. is unrelated to any change in income.