If the price elasticity of demand for opera tickets is estimated to be 4.5, then a 10 percent increase in opera ticket prices would be expected to cause a
a. 4.5 percent decrease in quantity demanded.
b. 4.5 percent increase in quantity demanded.
c. 45 percent decrease in quantity demanded.
d. 45 percent increase in quantity demanded.
e. 450 percent increase in quantity demanded
C
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The production possibilities curve shows all possible combinations of
A) two goods that are desired by society. B) two goods that can be efficiently produced with a given set of resources. C) two goods that can be purchased given the prices of the goods. D) two goods that two countries can trade with each other.
Preferred Budgets ($ in millions)45678910Number of voters (in thousands)516253022193Table 15.3Table 15.3 shows the preferred budget for a new performance center and the number of voters in a community who prefer that budget. Suppose that Dawn initially proposed $5 million while Terry proposed $9 million. Given the distribution of voters' preferences, Dawn can increase her chance of being elected by proposing:
A. a greater budget toward the median budget. B. a greater budget than $9 million. C. a smaller budget than $5 million. D. None of these
The severity of the 2007-2009 recession was due to the severity of the accompanying financial crisis. Explain what is meant by financial crisis
What will be an ideal response?
Ordinarily, governments attempt to promote competition in markets. Why do governments use patents to block entry into some markets when this prohibits competition?
A) Patents encourage firms to spend money on research necessary to create new products. B) Politicians sometimes succumb to pressure from lobbyists to grant favors to businesses for political reasons. C) Patents are an important source of government revenue. D) Patents are justified because they are an important means for creating network externalities.