When equilibrium price is higher than market price, quantity demanded is ________ quantity supplied.
Fill in the blank(s) with the appropriate word(s).
higher than
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Refer to Table 6-1. Suppose you own a bookstore. You believe that you can sell 40 copies per day of the latest John Grisham novel when the price is $35
You consider lowering the price to $25 and believe this will increase the quantity sold to 50 books per day. Compute the price elasticity of demand using the midpoint formula and these data. Select the correct implication from your work. A) The demand for the John Grisham book is elastic. Revenue will rise if the price is lowered. B) The demand for the John Grisham book is elastic. Revenue will fall if the price is lowered. C) The demand for the John Grisham book is inelastic. Revenue will fall if the price is lowered. D) The demand for the John Grisham book is inelastic. Revenue will rise if the price is lowered.
Antitrust laws are laws that ________.
A) support monopolies B) promote competition C) assist firms in earning greater profit D) create barriers to entry
In choosing between two products, a rational consumer will choose the product that gives her the:
A. least marginal utility per dollar. B. highest cost per additional unit of utility. C. lowest cost per additional unit of utility. D. greatest total utility regardless of cost.
If demand for a product is elastic, the value of the price elasticity coefficient is:
A. zero. B. greater than one. C. equal to one. D. less than one.