Sun City's public bus line has been operating at a deficit. The city decides to raise the fare from 50 cents to 75 cents, anticipating enough additional revenue to cover the deficit. What assumption is the city making about price elasticity?
Sun City is assuming demand is price inelastic. This means an increase in revenue would accompany an increase in price.
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Which of the following is a reason behind the rise in US trade over the last 80 years?
A) Rising government expenditure B) Improved bureaucracy C) Improved transportation technology D) Falling consumption expenditure
A core principle of the economic way of thinking assumes social phenomena
A) are less important than economic phenomena. B) are more important by far than economic phenomena. C) cannot be influenced by ethical considerations. D) emerge from individuals' choices.
An excise tax levied on a product will impose a smaller relative burden on consumers (and a larger relative burden on sellers) when
a. the supply of the product is relatively inelastic. b. the supply of the product is relatively elastic. c. the demand for the product is relatively elastic. d. either a or c is true.
How do we find the real exchange rate from the nominal exchange rate?