If a large percentage increase in the price of a good results in a small percentage increase in the quantity supplied of the good, supply is said to be
a. horizontal.
b. relatively inelastic.
c. relatively elastic.
d. income proof.
B
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In New State, the bottling law requires that people get a refund of five cents when they return an empty bottle or can. Why does the state pay people to return bottles? In your answer, be sure to mention the role played by rational choice
What will be an ideal response?
Refer to Figure 4-1. What is the total amount that Arnold is willing to pay for 4 burritos?
A) $1.00 B) $4.00 C) $7.00 D) $10.00
Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect: a. Andy's demand for pizza to increase
b. Andy's demand for pizza to decrease. c. Andy's quantity of pizza demanded to decrease. d. Andy's demand for beer to increase.
When market failure is present,
a. democratic political decision-making can be counted on to improve the efficiency of resource allocation. b. market allocation will achieve idealized economic efficiency. c. the conditions implied by idealized efficient allocation of resources will be absent, but it does not follow that political action will improve the situation. d. democratic political decision-making will never be able to improve the efficiency of resource allocation.