The price elasticity of demand is typically negative because
A. as price decreases, quantity demanded decreases.
B. as price decreases, quantity demanded increases.
C. as price decreases, demand decreases. as price decreases, demand increases.
D. consumers rarely respond to a change in price.
Answer: B. as price decreases, quantity demanded increases.
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In a given market, a large number of firms sell a similar product. Consumers think that each firm's product is somewhat different from that of its competitors. This market is
A) perfectly competitive. B) monopolistically competitive. C) equivalent to a monopoly because consumers think the products are different. D) equivalent to an oligopoly because consumers think the products are different.
When a government imposes price controls, the result is that
A) the rationing function of prices is not allowed to function freely. B) the price system operates more efficiently. C) all trades are as mutually beneficial to each party as possible. D) scarcity usually disappears.
If the marginal propensity to consume is 0.5 and disposable income decreases by $10,000 . by how much will consumption spending decrease?
a. $10,000 b. $500 c. $50 d. $5,000 e. $9,524
Which statement is true?
A. Industry X has a Herfindahl-Hirschman Index of 2400.
B. Industry X has an H-H-I of 100.
C. Industry X has an H-H-I of 80.
D. Industry X has an H-H-I of 1,000.