If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 units, then demand is
a. elastic
b. inelastic
c. of unitary elasticity
d. 0
e. inferior
B
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Refer to Figure 4-3. Kendra's marginal benefit from consuming the first ice cream cone is
A) $9.00. B) $7.50. C) $3.50. D) $0.50.
When a household owns shares of stock, _____
a. it has ownership rights in that firm b. it is entitled to the majority of the firm's profits c. it is liable to bear the entire loss faced by the firm d. it can consume the firm's products without paying for it e. it is responsible for correcting any defect in the product identified by the customers
When a person is making a decision at the margin he or she is comparing the additional benefit of that activity to the additional cost of the proposed action
Indicate whether the statement is true or false
Joe consumes 48 units of food and 12 units of clothing. If food is an inferior good:
A. Joe would strictly prefer receiving $10 in cash to receiving a $10 gift certificate at a clothing store. B. Joe would strictly prefer receiving a $10 gift certificate at a clothing store to receiving $10 in cash. C. upon receiving a $10 gift certificate at a clothing store, Joe would consume less clothing and more food. D. Joe would be indifferent between receiving a $10 gift certificate at a clothing store and receiving $10 in cash.