In the figure above, using the midpoint method, the price elasticity of demand when the price falls from $6 to $5 is equal to
A) 2.50.
B) 1.63.
C) 1.10.
D) 0.91.
E) 1.00.
C
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Give a brief description of the history of tariffs in the United States
What will be an ideal response?
Which of the following is FALSE concerning the long run?
A) Economists believe that fiscal and monetary policies have no permanent effects on the economy. B) Economists more or less agree that the economy tends to fluctuate around the level that is consistent with full employment. C) In the long run, the unemployment rate returns to its normal level. D) The current account must tend toward balance in the long run. E) None of the above.
If a nation has an absolute advantage in the production of a good,
A. it can produce that good at a lower opportunity cost than its trading partner. B. it can produce that good using fewer resources than its trading partner. C. it will specialize in the production of that good and export it. D. all of these.
The demand curve facing a firm acts as a constraint by
a. shifting to the left and right as suppliers vary their quantities b. showing the maximum price that could be charged to sell a specific output level c. showing the minimum quantity of output that a firm needs to produce at a specific price d. limiting sales to those who are first in line when the product is distributed e. relating the actions and decisions of buyers and sellers in the market