If the price of a good rises by 10% and the percentage decrease in the total amount consumers spend on the good is 10%, then the good is
A. unit elastic.
B. inelastic.
C. elastic.
D. perfectly inelastic.
Answer: C
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Suppose that during 2009, the actual real GDP of Chile was 3.5 billion pesos at the same time the potential GDP was 3.4 billion pesos. What sort of equilibrium existed in Chile?
What will be an ideal response?
Explain the modified version of utilitarianism proposed in the book entitled "A Theory of Justice," by the philosopher John Rawls and its relationship to the "big tradeoff."
What will be an ideal response?
AGI is
A. found by subtracting certain business expenses from H-S income. B. found by subtracting exemptions from taxable income. C. not used in modern tax policy. D. none of these answer options are correct.
There are only two firms in an industry with demand curves q1 = 30 - P and q2 = 30 - P. Both have no fixed costs and each has a marginal cost of 10 per unit produced
If they behave as profit maximizing price takers, each produces 10 units and sells them at a price of 10 so that each firm makes zero economic profits. If they form a cartel, their inverse demand curve is A) Q = 30 - P. B) Q = 60 - 2P. C) P = 60 - 2Q. D) P = 30 - Q/2.