Producers want to calculate the price elasticity of demand because they want to:
A. know the goods and services for which consumers are most sensitive to price changes.
B. understand what goods their customers dislike the most.
C. know that consumers will have the same response to a price change regardless of the good or service.
D. be able to predict the future preferences of their customers.
Answer: A
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Greg and Todd form a partnership and start a business in which each has a 50 percent share of the profit. After a year, the firm goes bankrupt and has debts of $20,000. Greg has no money, but Todd has $25,000 in the bank
Todd must pay ________ of debt. A) $0 because in a partnership each partner must pay the same B) $0 because partners in a partnership have limited liability C) half, or $10,000 D) $20,000
Transforming the tax base of an income tax by subtracting savings has the advantage that _____
a. a progressive rate structure can be applied to a consumption tax b. all income can be taxed at a flat rate c. it double taxes income d. it guarantees progressivity
A price support may be pictured by
A) shifting the demand curve to the right by the amount of the government purchase. B) shifting the demand curve to the left by the amount of the government purchase. C) shifting the supply curve to the right by the amount of the government purchase. D) shifting the supply curve to the left by the amount of the government purchase. E) drawing a horizontal line below equilibrium price at the supported price.
The marginal cost curve of pollution abatement is
A) downward sloping. B) upward sloping. C) horizontal. D) vertical.