When prices on science fiction novels decreased by 5%, the quantity demanded increased by 20%. The price elasticity of demand is
a. 4.
b. 20.
c. 0.25.
d. 5.
a. 4.
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A craze for apples in Riverdale increases the quantity demanded at every price by five bushels. Between any two prices, the new demand curve will be ____ the old demand curve.
A. more elastic than B. less elastic than C. equal in elasticity to D. More information is needed to predict the relationship.
The public choice model assumes that government policymakers
A) must promote the public interest at the expense of their own self-interests in order to be re-elected. B) will pursue their self-interests in personal affairs but only if it does not conflict with the public interest. C) are likely to pursue their own self-interests, even if their self-interests conflict with the public interest. D) will often act irrationally in their personal affairs, but will act rationally when they promote the public interest.
Elastic supply
What will be an ideal response?
Which of the following factors best explains why consumers might prefer to go to a restaurant that was similar to another restaurant in terms of décor and food choices but had fewer customers?
a. the presence of network externalities b. the idea that some people receive utility from goods they believe are popular c. income and substitution effects d. switching costs