In the above figure, over the price range P5P6, demand is
A) unit elastic.
B) elastic.
C) perfectly inelastic.
D) inelastic.
D
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An increase in the price of a complement shifts the demand curve to the
a. right b. left c. it does not change the demand curve d. none of the above
Which of the following correctly describes the system of fractional reserve banking?
a. Banks keep a fraction of their loans with other banks to maintain the quality of their loan portfolio. b. Banks can loan out the entire deposits but a small fraction of their own profits must be kept as reserve in bank vaults. c. Banks reserves amount to only a fraction of funds on deposit with the bank. d. The federal government insures only a fraction of the deposits at most banks.
Alexis de Tocqueville observed in his Democracy in America: "There is no country in which everything can be provided for by the laws, or in which political institutions can prove a substitute for
A) common sense and morality."
B) economic development."
C) police and prisons."
D) supply and demand."
E) the private pursuit of private interests."
Suppose a perfectly competitive ukulele factory can produce 35 ukuleles at an output at which marginal cost equals marginal revenue. The price per ukulele is $1300 and the average total cost is $1500. What is the profit or loss that this furniture
factory is earning? A) $700.00 B) -$7,000.00 C) -$1,050.00 D) -$450.00