When the price of a pound of apples is $1.00, 7500 pounds of apples are demanded. When the price of a pound of apples decreases to $0.80, 10,000 pounds of apples are demanded. In this price range the demand for apples is
A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly elastic.
A
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If a firm adds one more worker and total output increases from 100 to 120, the marginal product of labor equals
a. 220. b. 120. c. 100. d. 20.
When positive externalities exist in a market, if a Pigouvian subsidy is imposed:
A. those who interact in the market will lose surplus. B. those who interact in the market will gain surplus. C. those who do not interact in the market, but are affected by the externality, will gain surplus. D. None of these statements is necessarily true.
What percentage of the world's population subsists on incomes of less than $3 a day?
A. 40 percent. B. 60 percent. C. 70 percent. D. 50 percent.
The net loss of consumer and producer surplus from underproduction or overproduction is called:
A. government revenue. B. total surplus. C. efficiency. D. deadweight loss.