The absolute price elasticity of demand for a vertical demand curve
A) is infinite.
B) is 1.0.
C) is 0.
D) depends on where one is on the demand curve.
C
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If a consumer is spending all of his/her income in a manner where MUa / Pa is greater than MUb / Pb, then the consumer:
a. is maximizing his/her utility. b. should increase his/her purchases of B and decrease the purchases of A. c. should spend more money on both goods. d. should spend less money on both goods. e. should increase the purchases of A and decrease the purchases of B.
In terms of capabilities, education can be seen as:
A. contributing to better family planning. B. a factor that reduces income inequality in countries. C. a feature of more democratic regimes. D. something that requires a lot of funding, but produces very little return.
If the nature of production is such that adjustments take longer, then supply is likely to be _____________
Fill in the blank(s) with the appropriate word(s).
Refer to the above figure. Between points f and g, the opportunity cost of producing 75 more bushels of wheat is
A. 4 bushels of beans. B. 100 bushels of beans. C. 1 bushel of beans. D. 25 bushels of beans.