The price elasticity of demand tells us about
a. The sensitivity of price to quantity
b. The sensitivity of quantity to price
c. The sensitivity of income to price
d. The sensitivity of income to quantity
b
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Consider two economies: A and B. In economy A, the work culture is such that people do not mind working for 12 hours a day. On the contrary, in economy B, people work for a maximum of 6 hours in a day. If the culture hypothesis holds, then:
A) the growth rate in both economies are likely to fluctuate randomly. B) economy A is likely to grow faster than economy B. C) economy B is likely to grow faster than economy A. D) both economies are likely to grow at the same rate.
Facing stiff competition, Hendrix College, a small liberal arts institution in Conway, Ark
, decided two years ago to bolster its academic offerings, promising students at least three hands-on experiences outside the classroom, including research, internships and service projects. Although it raised tuition and fees by 29 percent, enrollment in the freshman class rose by 37 percent. Source: Jonathan D. Glater and Alan Finder, "In New Twist on Tuition Game, Popularity Rises With the Price," New York Times, December 12, 2006 Based on the information above, the demand for Hendrix College education is A) relatively elastic. B) unit elastic. C) perfectly elastic. D) More information is needed to answer the question.
Indifference curves are downward sloping because of the assumption of
A) completeness. B) transitivity. C) more is better. D) All of the above.
Refer to the below table. What percentage should be reported in blank C of column 3?
A. 6
B. 11
C. 35
D. 51