In Figure 4.2, at quantities smaller than Q1, demand is:
A. inferior.
B. elastic.
C. inelastic.
D. unit elastic.
Answer: B
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If buyers compete against sellers, then
A) buyers would be worse off as more sellers enter the market. B) buyers would be better off with fewer sellers in the market. C) sellers would be worse off with more buyers for their products. D) sellers would be better off with fewer buyers of their products. E) all the above are true.
Recall the Application about the behavior of prices in retail catalogs to answer the following question(s). In the Application, findings by Anil Kasyap showed that even though the catalogs listed in the Application were reissued every six months, the prices which were tracked in these retail catalogs:
A. were typically fixed for a year or more. B. changed every month. C. tended to fall during periods of high inflation. D. were not listed due to low rates of inflation.
If the cost per unit of output for a particular product is $50 and the product sells for $55, what is the percentage markup over cost per unit?
a. 200 percent b. 10 percent c. 100 percent d. 20 percent e. 50 percent
The consensus estimate of the elasticity of labor supply among females is ?0.1. The interpretation of this estimate is what?
A. On average, women will increase hours of work by 1% when their wage increases by 10%. B. On average, women will reduce hours of work by 1% when their wage increases by 10%. C. On average, women will increase hours of work by 10% when their wage increases by 1%. D. On average, women will reduce hours of work by 10% when their wage increases by 1%. E. On average, women will reduce hours of work by 5% when their wage increases by 10%.