Suppose Katrina always buys exactly 5 Rain Forest Bars each week, regardless of whether they are regularly priced at $1 or on sale for $0.50 . Based on this information, what is Katrina's price elasticity of demand for Rain Forest Bars?
a. 0
b. -1
c. Infinity
d. Answer cannot be determined
a
You might also like to view...
The opportunity cost to a cab driver of taking the day off increases when
A) it rains. B) more cabs enter the business. C) the price of gasoline rises. D) the weather is so pleasant everyone prefers to walk. E) many other cabs are out on the streets.
Two years ago, when her plant closed, Sue Ann McCoy was earning $18 an hour as an assembly line worker. She is unwilling to accept a large pay cut and has been out of work for three years. She is __________ unemployed.
A. frictionally B. structurally C. cyclically D. seasonally
When there are very few substitutes for a good, the demand for the good will tend to be
A) inelastic. B) elastic. C) unitary. D) perfectly elastic.
Collateralized default swaps:
A. helped reduce the losses from the mortgage default crisis. B. involve exchanging high-risk mortgages for low-risk mortgage-backed securities. C. are loans to investors in mortgage-backed securities. D. insured holders of loan-backed securities in case the underlying loans were not repaid.