In the face of gasoline prices approaching $4.00 automobile dealerships are heavily marketing their compact cars and hybrid vehicles
However, an interesting development is that many of these dealerships are offering their economy cars at MSRP (manufacturers suggested retail price) without offering discounts. What do you suppose these dealerships believe about the price elasticity of demand for these economy cars?
The dealerships may be assuming that the economy cars now have become more price inelastic in demand as consumers who are dumping their gas guzzling vehicles don't have many other choices.
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Roxanne and Eileen live in an apartment building with a laundry room in the basement. Roxanne does her laundry at home, spending $4 and 5 hours per week. Eileen sends her laundry out, spending $20 and 15 minutes per week transporting the laundry. On the basis of the information given, which one of the following must be true?
a. Roxanne earns more labor income than Eileen. b. Eileen earns more total income than Roxanne. c. Roxanne enjoys doing laundry; Eileen does not. d. Eileen has less laundry than Roxanne. e. Eileen and Roxanne attach different utilities to time spent doing laundry.
What is the most important factor that explains differences in living standards across countries?
a. the quantity of money b. the level of unemployment c. productivity d. equality
Which of the following is not included in U.S. GDP?
a. additions of newly produced output to inventory b. production of U.S citizens working in foreign countries. c. the estimated rental value of owner-occupied housing d. the value of food purchased from a grocery store to make meals at home without pay
Which of the following is an example of excess supply:
A. Price = $500, demand = 500, supply = 300 B. Price = $700, demand = 300, supply = 500 C. Price = $600, demand = 400, supply = 400 D. Price = $400, demand = 600, supply = 200