Income elasticity measures how a good's quantity demanded responds to
A) producers' incomes. B) change in buyers' incomes.
C) change in the price of another good. D) change in the goods price.
B
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Which of the following occur when a person maximizes utility? I. The marginal utility of each good bought is equal. II. The highest level of utility is attained. III. All of a person's budget is spent
A) I and II B) I and III C) II and III D) I, II and III
If the demand for cell phone service is inelastic, then
A) the percentage change in quantity demanded is greater than the percentage change in price (in absolute value). B) the percentage change in quantity demanded is less than the percentage change in price (in absolute value). C) the percentage change in quantity demanded is equal to the percentage change in price. D) the quantity demanded does not change in response to changes in price.
When voting mechanisms substitute for the market mechanism in allocating resources, we are relying on
A. Public choice theory. B. Cost-benefit analysis. C. Ballot box economics. D. Opportunity cost analysis.
In the above figure for a monopolistically competitive firm, the profit-maximizing output and price are respectively
A. 50 units and $8. B. 80 units and $11. C. 60 units and $9. D. 60 units and $14.