Refer to the diagram and assume that price increases from $2 to $10. The coefficient of price elasticity of demand (midpoint formula) relating to this change in price is about:
A. .25 and demand is inelastic.
B. 1.5 and demand is elastic.
C. 1 and demand is unit elastic.
D. .67 and demand is inelastic.
A. .25 and demand is inelastic.
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Let Kj and Lj denote the capital and labor stocks of country j (j = A,B), then country A is said to be capital abundant relative to country B if
A) KA > KB. B) KA/LA > KB/LB. C) LA < LB. D) All of the above.
When the exchange rate for the Mexican peso changes from 10 pesos to the U.S dollar to 9 pesos to the U.S. dollar, then the Mexican peso has ________ and the U.S. dollar has ________
A) appreciated; appreciated B) depreciated; appreciated C) appreciated; depreciated D) depreciated; depreciated
Which of the following has resulted from the North American Free Trade Agreement (NAFTA)?
a. Domestic producers in the United States, Canada, and Mexico have free access to larger markets. b. The low wages of Mexican workers have made it virtually impossible for American and Canadian producers to export goods to Mexico. c. A smaller variety of goods are available to consumers in all three countries. d. Unemployment has increased in all three countries.
If at a price of $24, Octavia sells 36 home-grown orchids and at $30 she sells 24 home-grown orchids, the demand for her orchids is
A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic.