When the absolute price elasticity of demand is less than 1, demand is
A) elastic.
B) unit-elastic.
C) inelastic.
D) undetermined without more information.
Answer: C
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Suppose the price elasticity of demand for methamphetamine is -0.35
If decriminalization caused the price of methamphetamine to fall by 75 percent, what will be the percentage increase in the quantity of methamphetamine demanded? If the price elasticity is -3.5, what will be the percentage increase in quantity demanded?
If the MPC is 0.95, then a $10 million increase in disposable income will
A) increase consumption by $200 million. B) decrease consumption by $105 million C) increase consumption by $9.5 million. D) increase consumption by $950 million.
The combination of psychology and economics to determine individual decision making is known as
A. psychonomics. B. neuronomics. C. behavioral economics. D. positive analysis.
To efficiently improve environmental quality, it is usually
A) better to focus on the hardest areas to clean up first since these usually are the biggest problems. B) more appropriate to concentrate on the physical quantities of pollution rather than on economic costs. C) best to set up stringent emission standards that must be followed by everyone. D) better to focus on economic damages rather than physical quantities of pollution.