If a good has a price elasticity of demand coefficient less than one, then:
A. this good has an elastic demand.
B. this good has an inelastic demand.
C. a 10 percent increase in the price will result in a greater than 10 percent decrease in the quantity demanded.
D. the demand curve will be vertical.
Answer: B
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The World Bank classifies countries as developed or developing on the basis of their:
a. disposable income. b. disposable income per capita. c. real income per capita. d. GNP per capita.
Sport Tee Corporation manufactures T-shirts bearing the logos of professional football teams. The wholesale market for sport T-shirts is perfectly competitive. The manager forecasts the wholesale price of T-shirts next year to be $7.00. The firm's estimated marginal cost isSMC = 12 ? 0.005Q + 0.0000008Q2where Q is the number of T-shirts produced and sold each month. Sport Tee Corporation will have a fixed cost of $2,000 per month. Average variable cost at Sport Tee is
A. 12Q ? 0.0025Q2 + 0.000000266Q3 B. 12 ? 0.01Q + 0.0000024Q2 C. 12 ? 0.0025Q + 0.000000266Q2 D. 12 ? 0.0001Q + 0.000001Q2 E. none of the above
A sin tax is an example of:
A. a tax that increases the efficiency of a market. B. a Pigovian tax. C. government policy increasing total surplus in a market. D. All of these statements are true.
In most defined contribution retirement plans, employees have a choice about whether or not to participate. Which of the following statements about worker participation is true?
A. Current U.S. law says that workers must be automatically enrolled in employer retirement plans. B. Workers are more likely to participate if they are automatically enrolled and are permitted to opt out, rather than not enrolled and permitted to opt in. C. Full-time workers are less likely to participate than part-time workers because part-time workers need the retirement income more. D. Workers are more likely to be part of a defined benefit plan than a defined contribution plan.