Refer to the information provided in Figure 7.9 below to answer the question(s) that follow. 
Figure 7.9Refer to Figure 7.9. The firm is currently along isocost CD. If the price of capital is $40, then the price of labor is
A. $6.
B. $40.
C. $240.
D. indeterminate from this information.
Answer: B
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When the ratio of domestic prices to foreign prices rises:
A) the real exchange rate depreciates. B) the real exchange rate appreciates only when the nominal exchange rate appreciates. C) the real exchange rate appreciates only when the nominal exchange rate depreciates. D) the real exchange rate appreciates even when the nominal exchange rate is constant.
The amount of time elapsed since a price change impacts the elasticity of demand because as more time passes,
A) people can find more substitutes, and so the elasticity of demand decreases. B) people can find more substitutes, and so the elasticity of demand increases. C) people's incomes will increase, and so the elasticity of demand decreases. D) the good's price will have a chance to return to its previous level.
If two commodities are complements then:
a. the cross-price elasticity will be zero. b. the cross-price elasticity will be one. c. the cross-price elasticity will be negative. d. the cross-price elasticity will be positive.
If the price of a soda is $0.50, and the marginal utility of the first soda consumed is valued at $2, then the consumer surplus of that first soda is
a. $0.50 b. $1.50 c. $2.00 d. $2.50 e. $4.00