A 3 percent increase in the price of cotton leads to a 6 percent decrease in the quantity demanded of cotton. The absolute price elasticity of demand is
A) 3.
B) 2.
C) 0.5.
D) 0.33.
B
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The marginal utility of a third skirt is
A) three times the average utility of the three skirts. B) three skirts times the price of a skirt. C) the total utility of three skirts divided by three. D) the change in total utility from the third skirt.
If muffins and bagels are substitutes, a higher price for bagels would result in a(n)
a. increase in the demand for bagels. b. decrease in the demand for bagels. c. increase in the demand for muffins. d. decrease in the demand for muffins.
Answer the following statement(s) true (T) or false (F)
1. Funding for publicly owned treatment works (POTWs) was originally in the form of loans and later moved to a federal grant program. 2. The Clean Water State Revolving Fund (CWSRF) program replaced the federal grant program and established state loans to support POTW construction and other projects. 3. Funding through the Clean Water State Revolving Fund (CWSRF) program was supplemented by funds allocated through the American Recovery and Reinvestment Act of 2009. 4. Ultimately, federal subsidies of POTW construction accomplished little in terms of improving waste treatment for the U.S. population. 5. Empirical research indicates that federal grants added dollar-for-dollar to POTW construction that would not otherwise have been completed at the local level.
Economic variables we are most interested in are
a. real variables, but we usually observe nominal variables. b. nominal variables, but we usually observe real variables. c. real variables, which we usually observe. d. nominal variables, which we usually observe.