The price elasticity of demand for bottled water in New York is -3, and the price elasticity of demand for bottled water in Florida is -0.6. In other words, demand in New York is ________ and demand in Florida is ________.
A. inelastic; elastic
B. elastic; inelastic
C. elastic; unit elastic
D. inelastic; unit inelastic
Answer: B
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The bowed outward shape of the production possibilities frontier in the above figure indicates that
A) some resources are better suited for producing computers. B) the opportunity cost of producing more computers decreases as more computers are produced. C) computer technology is subject to the principle of decreasing costs. D) All of the above answers are correct.
In the above figure, what is the profit at the profit-maximizing output level?
A) $70 B) $2 C) $20 D) $10
Explain the trade-off between equity and economic efficiency inherent in the welfare system.
What will be an ideal response?
What would it take to overcome scarcity?
a. spending more money b. making better decisions c. having unlimited resources d. eliminating price controls