At a price of $1.20, a local coffee shop is willing to supply 100 cinnamon rolls per day. At a price of $1.40, the coffee shop would be willing to supply 150 cinnamon rolls per day. Using the midpoint method, the price elasticity of supply is about
a. 0.15
b. 0.375
c. 2.5
d. 2.60
d
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At a Mufflers-R-Us repair shop customers have the opportunity to wait in a room with chairs, a television, magazines, coffee and donuts. The economic way of thinking suggests the muffler shop is
A) selling mufflers below cost. B) selling the additional goods and services below cost. C) attempting to increase its total profit D) engaging in unfair trade practice because it provides the goods and services free of charge. E) almost certainly doing none of the above.
If coal-burning electrical utility companies fully internalized pollution costs, then we could expect
A) an increase in electricity prices. B) a decrease in electricity prices. C) no change in electricity prices. D) a greater use of coal to produce electricity.
Which of these changes is likely to follow when the Fed purchases U.S. government securities? a. Aggregate demand will decrease
b. The demand for financial securities will increase. c. Rate of interest will increase. d. Planned investment spending will increase. e. Real GDP will decrease.
If the poverty threshold is set at 50 percent of median income, and if the poverty line is $10,000 . what is median income?
a. $50,000 b. $20,000 c. $10,000 d. $5,000 e. $25,000