If the elasticity of demand is 3, and the price rises by 15 percent, then
A. The percentage change in quantity demanded will fall as income rises.
B. The quantity demanded will rise by 4.5 percent.
C. The quantity demanded will fall by 45 percent.
D. The quantity demanded will increase by 5 percent.
Answer: C
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To avoid accidents, the government of Richland does not allow boating in lakes during rainstorms. This is an example of ________
A) consumer sovereignty B) consumerism C) bureaucratic redtapism D) paternalism
Give an example of a firm that decides to shut down because it cannot cover variable costs. Use hypothetical numbers and avoid using any examples provided in the text.
What will be an ideal response?
Suppose one worker in New Ralph Island can produce 40 walking sticks or 10 boomerangs each hour. The opportunity cost of producing 1 walking stick is _____.?
Fill in the blank(s) with the appropriate word(s).
If a production possibilities frontier is a downward sloping straight line, it
A. shows that there are no trade-offs in the production process. B. shows that resources are not efficiently allocated C. shows that production on the frontier implies that it is not possible to produce more of anything without producing less of something else. D. shows that resources are unemployed.