Assuming elasticity of demand is reported as an absolute value, a price elasticity of demand of 0.4 indicates an:
A. elastic demand, meaning the percentage change in quantity demanded will be greater than the percentage change in price.
B. inelastic demand, meaning the percentage change in quantity demanded will be greater than the percentage change in price.
C. elastic demand, meaning the percentage change in quantity demanded will be less than the percentage change in price.
D. inelastic demand, meaning the percentage change in quantity demanded will be less than the percentage change in price.
D. inelastic demand, meaning the percentage change in quantity demanded will be less than the percentage change in price.
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If the annual inflation rate in an economy is "i", then $1 borrowed at the beginning of a year will have the same purchasing power as ________ dollars at the end of the year
A) (1 - i) B) (1/i) C) (1 + i) D) i
Suppose, as a result of a long-run adjustment in a perfectly competitive industry to a change in demand, price and output both fell. Therefore, demand must have __________ in this __________ industry
a. fallen; increasing cost b. fallen; decreasing cost c. increased; increasing cost d. increased; decreasing costs e. decreased; constant cost
A metal-stamping factory moves next to a day care center. Noise from the factory makes it impossible for the kids to nap. It would cost the factory $5 million to move; it would cost $1 million for the day care center to move. Sound insulation for the factory costs $1 million; insulation for the day care center costs $200,000 . The court determines that the day care center has the property right
What would be the optimal solution to this problem? a. The factory should install sound insulation because that is cheaper than moving. b. The factory should pay the day care center to move. c. The factory should buy insulation for the day care center. d. The day care center should buy its own insulation. e. The day care center should move.
From 1991 to 2007, the rate of inflation in the U.S. has been
a. zero. b. between zero and 2.1%. c. between 1.6% and 4.1%. d. between 3.2% and 7.2%.