When the percentage change in quantity demanded is numerically less than the percentage change in price, ceteris paribus, demand is:
a) Inelastic.
b) Elastic.
c) Perfectly elastic.
d) Unitary elastic.
Answer: a) Inelastic.
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To calculate the revenue government receives when a tax is imposed on a good, multiply the
A) pre-tax equilibrium price by the pre-tax quantity. B) after-tax equilibrium price by the after-tax quantity. C) tax by the pre-tax quantity. D) tax by the after-tax quantity. E) after-tax equilibrium price by the after-tax quantity and then subtract the pre-tax equilibrium price multiplied by the pre-tax quantity.
Public goods have at least one of two characteristics. What are the two characteristics?
a. collective consumption; nonexcludability b. individual consumption; nonexcludability c. collective consumption; excludability d. individual consumption; excludability
The monopolist's demand curve is:
a. identical to the market demand curve. b. identical to the marginal revenue curve. c. below the marginal revenue curve. d. a horizontal line at the market price. e. a U-shaped curve.
A curve that shows how the best available consumption bundle changes as income changes (holding the consumer's preferences and all other prices fixed) is called:
A. a price-consumption curve. B. an individual demand curve. C. an income-consumption curve. D. a budget line.