If the price elasticity is 1.50 for the demand of vanilla lattes, then if the seller raises price by 10 percent, then quantity demanded for the product will
A. rise by 15 percent.
B. fall by 15 percent.
C. fall by 1.5 percent.
D. fall by 67 percent.
Answer: B
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The above figure gives your budget line between CDs and magazines. Which combination of CDs and magazines is not affordable?
A) combination a B) combination b C) combination c D) both combinations b and d
The simultaneous export and import of airplanes by the United States is an example of
A) increasing returns to scale. B) imperfect competition. C) intraindustry trade. D) interindustry trade.
When the absolute price elasticity of demand equals 1, demand is
A) elastic. B) unit-elastic. C) inelastic. D) undetermined without more information.
The consumption function will shift for all of the following reasons except:
a. a change in a household's real assets. b. a change in interest rates. c. expectations of price changes. d. changes in a household's disposable incomes. e. changes in taxation policy.