If the local pizzeria raises the price of a medium pizza from $6 to $10 and quantity demanded falls from 700 pizzas a night to 100 pizzas a night, the arc price elasticity of demand for pizzas is:
A) 0.67.
B) 1.5.
C) 2.0.
D) 3.0.
D
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A tariff on a good _________ its price.
Fill in the blank(s) with the appropriate word(s).
Supply is said to be inelastic when the:
A. percentage change in quantity supplied is greater than the percentage change in price. B. change in quantity supplied is greater than the change in price. C. percentage change in quantity supplied is less than the percentage change in price. D. change in quantity supplied is less than the change in price.
Utility analysis helps economists understand
A) how people make decisions about what they buy and how much. B) how to eliminate opportunity costs. C) how to eliminate scarcity. D) none of the above.
(Last Word) The Glass-Steagall Act of 1933:
A. encouraged the creation of large, interconnected financial services firms. B. was a primary cause of the 2007-2008 financial crisis and subsequent recession. C. created banks "too big to fail" and "too big to jail." D. separated high-risk and low-risk financial activities across different firms.