If the price elasticity of demand for cigarettes is 0.4,
A. A 5 percent decrease in price will cause quantity demanded to rise by 10 percent.
B. The demand is inelastic.
C. The demand is elastic.
D. A 10 percent increase in price will cause quantity demanded to fall by 40 percent.
Answer: B
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If the per-worker production function shifts up,
A) negative technological change has occurred in the economy. B) it now takes more capital per hour worked to get the same amount of real GDP per hour worked. C) an economy can increase its real GDP per hour worked without changing the level of capital per hour worked. D) the per-worker production function becomes flatter.
The aggregate demand curve shows the relationship between the price level and the level of planned aggregate expenditure in the economy
Indicate whether the statement is true or false
We know that in the long run, perfectly competitive firms produce where MC = MR and end up making zero economic profit. The profit-maximizing output level for a monopolist is where
a. price is maximized b. quantity is maximized c. ATC curve is minimized d. maximum efficiency is achieved e. MR = MC
Volume, as reported in stock tables, refers to the
a. number of shares traded. b. percentage of shares outstanding traded. c. number of shares traded times the price they sold at. d. number of shares of a company traded divided by the shares of all companies traded.