A health club sells 50 memberships when the monthly price is $60 and 70 memberships when the monthly price is $40 . Using the method of average values, the price elasticity of demand for memberships at this health club is
a. 6.00
b. 0.10
c. 1.00
d. 0.25
e. 0.83
E
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Explain the funding structure of the Social Security and Medicare programs. Why are these programs in danger of running out of funds in the future?
What will be an ideal response?
When a consumer is consuming at a point where his or her budget line is not as steep as his or her indifference curve, then he or she should
A) consume more of the good that is measured on the horizontal axis. B) consume less of the good that is measured on the horizontal axis. C) not change his or her behavior. D) consume none of the good that is measured on the horizontal axis.
Incentives are not likely to pose a problem:
A. if the interests of the employees and the employers are perfectly aligned. B. if the interests of the employees and the employers conflict somewhat. C. as long as employers can exploit the employees. D. if the interests of the employees and the employers conflict.
Keisha can produce the following combinations of X and Y: 100X and 20Y, 50X and 30Y, or 0X and 40Y. The opportunity cost of one unit of Y for Keisha is
A) 5 units of X. B) 0.2 units of X. C) 3 units of X. D) 1/2 unit of X. E) none of the above