A cafeteria is willing to produce 100 cups of coffee when the price is $1 and 150 cups of coffee when the price is $1.30, other things being equal. The price elasticity of supply of coffee is
A) 1.53.
B) 0.67.
C) 0.10.
D) 0.50.
A
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How has the distribution of income changed in the past few decades?
What will be an ideal response?
An important role of financial institutions is to
A) provide borrowers with low interest rates. B) provide information to lenders about the quality of financial claims issued. C) buy primary securities. D) control the money supply.
The above figure shows the market for a particular good. If the market is controlled by a perfect-price-discriminating monopoly, compared to a monopoly who charges a single price, the change in consumer surplus is
A) A. B) A + B + C. C) A + B + C + D + E. D) zero.
The incidence of absolute poverty is reduced by
A) annual recalculations of the poverty line. B) government welfare programs. C) economic growth. D) the size of the budget deficit.