What type of elasticity, when the quantity drops by less than 10 percent, the total revenue increases by less than 10 percent?
a. elastic
b. inelastic
c. unit elastic
d. perfectly elastic
b
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What is meant by the term "long-run competitive equilibrium?
What will be an ideal response?
Refer to the information provided in Figure 3.18 below to answer the question(s) that follow.
Figure 3.18Refer to Figure 3.18 The market is initially in equilibrium at Point A. If demand shifts from D1 to D2, the equilibrium price will change from ________ and the equilibrium quantity will change from ________.
A. $3.00 to $4.00; 250 to 350 B. $4.00 to $3.00; 350 to 250 C. $4.00 to $3.00; 250 to 350 D. $3.00 to $4.00; 350 to 250
Explain the difference between real and nominal income. How can you get an approximation of the percentage change in real income from one time period to another?
What will be an ideal response?
When the labor supply is very inelastic, the payroll tax is
A. split fairly evenly between the employer and the employee. B. borne mostly by the employee. C. borne mostly by the employer. D. borne entirely by the employer.