Richstone Bakery reduces the price of wheat bread from $2 to $1 and finds that quantity demanded increases from 100 to 120 loaves. Richstone calculates that the price elasticity of demand for wheat bread is (approximately)
a. 0.00
b. 0.30
c. 5.00
d. 10.5
e. 2.00
B
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A monopolistically competitive firm and a perfectly competitive firm are alike because both types of firms
I. face downward sloping demand curves. II. have marginal revenue curves that lie beneath their demand curves. III. can make only zero economic profit in the long run. A) I and II B) I and III C) III only D) I only
A monopolized market is characterized by:
a. a sole seller of a product for which there are few suitable substitutes. b. very strong barriers to entry. c. a single firm facing the market demand curve. d. all of these.
The largest labor unions in the United States are the
A. Walmart employee union. B. International Brotherhood of Teamsters (Teamsters). C. Service Employees International Union and the National Education Association (NEA). D. International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW).
When a nation's international borrowing is positive, then its national saving ________ its national investment.
A) exceeds B) equals C) is less than