The demand for movies is unit elastic if
A) a 5 percent decrease in the price leads to an infinite increase in the quantity demanded.
B) a 5 percent increase in the price leads to a 5 percent decrease in the quantity demanded.
C) any increase in the price leads to a 1 percent decrease in the quantity demanded.
D) a 5 percent increase in the price leads to a 5 percent increase in total revenue.
B
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A dose-response function
a. identifies the threshold level of exposure by its vertical intercept b. always graphs as a linear function c. is an important element of the risk management process d. all of the above e. none of the above
A decrease in the marginal income tax rate is a fiscal policy which will increase aggregate demand
Indicate whether the statement is true or false
Suppose Joe's MRS for cookies with crackers is 6 crackers per cookie. Also assume that Mary's MRS for cookies with crackers is 3 crackers per cookie. Assuming that these rates of substitution don't depend on the amounts consumed, which of the following trades would make both Joe and Mary better off?
A. Joe gives Mary 5 crackers in exchange for a cookie. B. Joe gives Mary 2 crackers in exchange for a cookie. C. Joe gives Mary 6 crackers in exchange for a cookie. D. There is not enough information to answer the question.
If Utopia has a closed economy, the number of cases of tile consumed each is ________ per year, and if it has an open economy the number of cases of tile consumed is ________ per year.
A. 450; 200 B. 300; 450 C. 300; 200 D. 200; 450