If the price of orange juice rises 10%, and as a result the quantity demanded falls by 8%, the price elasticity of demand for orange juice is
A) -1.25.
B) elastic.
C) Both A and B above.
D) Neither A nor B above.
D
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A benefit-based standard is one that
a. considers the benefits balanced with the costs of that standard b. maximizes the marginal external benefit (MEB) of the standard c. is set to the point at which MEB is zero d. none of the above
Which of the following financial assets is most likely to have a higher amount of risk than the others?
A. Stocks B. Bonds C. Mutual funds D. Savings accounts
The marginal propensity to consume (MPC)
A. is greater than 1 only if the marginal propensity to save is greater than 1. B. shows how much of an extra dollar of real disposable income is spent. C. shows how much real disposable income changes when consumption falls. D. shows the percentage of real disposable income consumed at each level of income.
Two identical firms are considering entering a new market that currently has no suppliers. The demand is large enough for both firms to make a positive profit. There are no fixed costs to enter. Explain how a simultaneous decision to enter on the part of the two firms will lead to a different outcome than a sequential entry decision
What will be an ideal response?