At the midpoint of the demand curve, in absolute value,
a) the price elasticity coefficient is at a maximum.
b) the price elasticity coefficient is at a minimum.
c) the price elasticity coefficient is zero.
d) the price elasticity coefficient is one.
e) the price elasticity is the same as elswhere along this demand curve
Answer: d) the price elasticity coefficient is one.
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Purchasing power parity does not hold in the short to medium run because
A) exports don't equal imports. B) exchange rates fluctuate too much. C) most business cycles are caused by shocks to aggregate demand. D) countries produce different goods.
Why does producer surplus decrease as price decreases?
A. Producers sell less of the good while consumers buy even more of the good. B. Consumers buy more of the good at the lower price. C. Producers sell less of the good and receive less from the lower price. D. Producers sell more of the good but receive less from the lower price.
The process by which inputs are combined, transformed, and turned into outputs is called
A. capitalization. B. outsourcing. C. production. D. technology.
Refer to the information provided in Table 21.2 below to answer the question(s) that follow. Table 21.2
Refer to Table 21.2. Personal consumption expenditures in billions of dollars are
A. 900. B. 1,100. C. 1,400. D. 1,600.