If the demand for movie tickets is elastic, then
A. Ed > 1.
B. Ed = 1.
C. Ed = 0.
D. Ed < 1.
Answer: A
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A tradeoff is illustrated by
A) a point inside the PPF. B) a point outside the PPF. C) a change in the slope of the PPF. D) the negative slope of the PPF.
Because of international time lags between ordering and the receipt of goods, a depreciation of a currency:
a. will not change import or export volumes for a time, since prices on orders already placed cannot be renegotiated. b. will immediately change import and export volumes, because buyers and sellers always include an opt-out clause. c. will affect import and export volumes in third countries not party to the particular transaction. d. will never change import or export volumes.
A shift to the left of a supply curve is caused by:
What will be an ideal response?
You sell your good in a perfectly competitive market where the market price is $7.00. When you sell 100 units your total revenue is $700. When you sell 101 units:
A. total revenue increases by less than $7. B. total revenue increases by exactly $7. C. total revenue increases by more than $7. D. total revenue may increase or decrease.