Suppose the Pleasant Corporation cuts the price of its American Girl dolls by 10 percent, and as a result, the quantity of the dolls sold increases by 25 percent. This indicates that the price elasticity of demand for the dolls over this range is
a. 2.5.
b. 0.4.
c. 0.5.
d. 5.
e. inelastic.
A
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The division of labor can benefit society only if
A. a system of exchange exists. B. society uses all of its resources efficiently. C. society has no specialized resources. D. labor resources are not scarce.
The net-export effect of contractionary monetary policy is
A) the appreciation of the value of the dollar and a resulting decrease of U.S. net exports. B) the depreciation of the value of the dollar and a resulting increase of U.S. net exports. C) the appreciation of the value of the dollar and a resulting increase of U.S. net exports. D) the depreciation of the value of the dollar and a resulting decrease of U.S. net exports.
Refer to the above table. What is the marginal factor cost when the firm employs the second unit of labor?
A) $19
B) $21
C) $36
D) $38
A health club sells 50 memberships when the monthly price is $60 and 70 memberships when the monthly price is $40 . The price elasticity of demand for memberships at this health club is (using the average values method):
a. 0.25. b. 0.6. c. 1.0. d. 1.1. e. 0.83