Assume that when the price of cantaloupes is $2.50 the demand for cantaloupes is unit-elastic, and that the demand curve for cantaloupes is linear and downward sloping
If firms lower the price of cantaloupes to $2.00 which of the following statements can be made regarding the price elasticity of demand for cantaloupes?
A) The demand for cantaloupes at $2.00 must be elastic.
B) The demand for cantaloupes at $2.00 must be unit elastic.
C) We cannot determine whether the demand for cantaloupes is elastic or inelastic without knowing what the quantity demanded is at each price.
D) The demand for cantaloupes at $2.00 must be inelastic.
D
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
Opportunities for arbitrage in the foreign exchange markets throughout the world are:
A. plentiful, particularly in developing nations. B. plentiful, particularly in markets trading in U.S. dollars. C. fleeting, because technology today allows quick trading that eliminate them quickly. D. fleeting, because most governments ‘peg' or fix their currency's value to another's.
Who is not counted in the U.S. labor force?
A. a person working at least one hour for pay per week B. a full-time college student C. a 70-year-old person who supplements his Social Security payments by working eight hours each week at the minimum wage D. someone actively looking for a job E. a person working 15 hours a week or more, not for pay
Identify the relationship between GDP, taxes, and disposable income.
What will be an ideal response?