If the price elasticity of demand for a product measures .45,
a. this good has many available substitutes.
b. this good must be a nonessential good.
c. this good is a high-priced good.
d. a decrease in price will increase total revenue.
e. this good is demand price inelastic.
Answer: e. this good is demand price inelastic.
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If the individuals in a group of consumers have identical tastes, then the group can be treated as if it behaved as a singe representative consumer.
Answer the following statement true (T) or false (F)
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 new equilibrium price will be ________ and the new equilibrium quantity will be ________.
A. $4.00; 150 B. $3.00; 250 C. $6.00; 250 D. $4.00; 350
The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price
A) the amount people are willing to buy B) the amount people are able to buy C) the amount people are willing and able to offer D) the amount people are willing and able to buy E) the amount people are willing to buy because it is the amount sellers are willing to sell
Why might an individual set up trusts?
A. as a strategy to avoid taxes on wealth. B. for lower insurance premiums. C. to insure the security of a loan. D. to have a steady stream of income during retirement.