The price elasticity of demand of science fiction novels is 2.3. Demand is
a. inelastic.
b. unit elastic.
c. elastic.
d. elasticity.
c. elastic.
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Refer to Figure 18.3. After trade and specialization begin, the maximum amount of scooters that Livonia can consume is
A) 120. B) 100. C) 80. D) 40.
The success of a predatory pricing strategy in an oligopolistic market depends on all of the following except:
A) the number of firms operating in the industry prior to enactment of the policy. B) how far the predatory price is below cost. C) the period of time for which the predatory price is in effect. D) the length of time over which recoupment of profits occurs.
Corey has a blue sweater and a denim jacket. On some days he chooses to wear the sweater but on others he chooses to wear the jacket. Economists would most likely conclude that:
A. Corey’s preferences have changed. B. Corey’s preferences have not changed, but other factors may have changed such as the temperature outside. C. Corey is irrational if he wears different clothing on different days. D. Corey is indifferent between wearing a jacket or a sweater.
The Bali, Indonesia bombing by Al-Qaeda, which struck a U.S. target that was lightly defended, was an example of the "rational terrorist's"
A. marginalist technique. B. diversion technique. C. substitution effect. D. compression effect.