The elasticity of any demand curve is the same as its slope
a. True
b. False
Indicate whether the statement is true or false
False
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Use the following graph of the demand for coffee to answer the question below.
Refer to the three demand curves for coffee. Which of the following would shift the demand for coffee from D1 to D3?
A. a decrease in the price of coffee B. a decrease in the number of buyers of coffee C. an expected increase in the price of coffee in the future D. an increase in the number of buyers of coffee
"A competitive market achieves economic efficiency by maximizing the sum of consumer surplus and producer surplus." This statement
A) is true only if there are no positive or negative externalities in the market. B) is true only if there are positive externalities in production in the market. C) is true in theory, but economic efficiency cannot be achieved in a real market. D) is true only if there are no negative externalities in the market.
The amount of income a consumer has to spend on goods and services is known as
A) wealth. B) a budget constraint. C) purchasing power. D) effective demand.
Suppose the production function for T-shirts can be represented as q = L0.25K0.75. Show that the production function has constant returns to scale
What will be an ideal response?