At a price of $4.50/pound, people buy 55 pounds of chocolate cream candy. At a price of $5.50/pound, people buy 45 pounds of chocolate cream candy. What is the arc elasticity of demand for chocolate cream candy in this price range?
a. 1.0
b. 10.0
c. 0.1
d. 0.67
e. none of the above
a. 1.0
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Before Walmart's entry into the retail pharmacy business which drove down prices, existing pharmacies
a. were operating efficiently, so this is an example of predatory pricing. b. were colluding on price, so this is an example of a contestable market. c. were not operating as efficiently as afterwards, so this is not a case of predatory pricing. d. did not advertise but were forced to do so by the new competition.
Refer to the table below. What is the probability of selling 23 or more cakes?
The above table shows the probability distribution of cake sales at Busy Betty's Bakery.
A) 0.60
B) 0.30
C) 0.70
D) 0.40
If the MPC = 1, the spending multiplier is:
a. infinite. b. zero. c. 10. d. 100. e. 1.
The gold standard system was:
A) a floating exchange rate system. B) a fixed exchange rate system, in which the country's currency was fixed relative to a pound of gold. C) a fixed exchange rate system, in which the country's currency was fixed relative to an ounce of gold. D) only used by the United States.