Suppose that the absolute price elasticity for cookies equals 0.8. We could then say that the demand for cookies is
A. perfectly elastic.
B. inelastic.
C. unit-elastic.
D. elastic.
Answer: B
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Multiplier effects occur when there is a change in spending which does not depend on income. Spending which does not depend on income is referred to as
A) coincident spending. B) nominal spending. C) autonomous expenditures. D) induced expenditures.
To answer the question, refer to the following table showing a demand schedule: 
As quantity demanded rises from 1,400 to 1,800, what is marginal revenue?
A. -$400 B. $50 C. $25 D. -$50 E. -$75
The laws that prevent companies from unfairly trying to gain market power or reduce the amount of competition in a market are known as
A. the Universal Commercial Code. B. free-rider laws. C. antitrust laws. D. OSHA, EPA, and FCC.
Refer to the information provided in Figure 6.10 below to answer the question(s) that follow.
Figure 6.10Refer to Figure 6.10. The current price of a turkey sandwich is $8. If Kyle is currently buying seven turkey sandwiches a week, he ________ maximizing utility because the marginal utility ________ than its price.
A. is not; gained from the seventh sandwich is less B. is; from the seventh sandwich is less C. is; from the seventh sandwich is greater D. is not; gained from the seventh sandwich is greater