A decrease in the price of rice from 50 cents to 40 cents a pound increases consumption from 16 to 20 tons a week in Gainesville and from 160 to 200 tons in the larger city of Miami. The elasticity of demand for rice is
a. greater in Miami than in Gainesville, even taking into account the population difference.
b. greater in Gainesville than in Miami in spite of the population difference.
c. equal in Gainesville and Miami regardless of the population difference.
d. impossible to compare because of the population difference.
c
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In an oligopoly, there are
A) many firms and barriers to entry. B) many firms and no barriers to entry. C) few firms and barriers to entry. D) few firms and no barriers to entry. E) barriers to entry and only one firm.
The above figure shows a competitive firm's demand for labor assuming that the firm's output sells for $1 per unit. If the wage is $5 per hour, a ten cent per unit subsidy on the good sold by the firm will cause the firm to
A) demand less labor. B) demand more labor. C) raise the wage for workers to $5.10. D) None of the above.
Behavioral economists recommend mechanisms to help people actually do things they say they want to do but often don't. Such mechanisms are often called
A. savings rates. B. charitable donations. C. self-control. D. commitment devices.
The U-form of organization is equivalent to the matrix form
Indicate whether the statement is true or false