If the numerical value of the price elasticity of demand is 3, then a one-percent change in price will cause a(n)
a. larger percentage change in quantity demanded, so demand is elastic
b. larger percentage change in quantity demanded, so demand is inelastic
c. smaller percentage change in quantity demanded, so demand is elastic
d. smaller percentage change in quantity demanded, so demand is inelastic
e. equal percentage change in quantity demand, so demand is unitary elastic
A
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If the costs of producing pizza increase, which will occur?
A) The supply of pizza will decrease. B) The demand curve for pizza will shift leftward when the price of a pizza increases. C) Pizza will cease to be produced and sold. D) The quantity of pizzas supplied will increase as sellers try to cover their costs. E) The demand curve for pizza will shift rightward when the price of a pizza increases.
To convert a nominal GDP to a real GDP, you would use
A) the PCE deflator. B) the CPI measure. C) the GDP deflator. D) the PPI measure.
Jen spends her afternoon at the beach, paying $1 to rent a beach umbrella and $11 for food and drinks rather than spending an equal amount of money to go to a movie. Her opportunity cost of going to the beach is:
A. the value she places on seeing the movie plus the $12 she spent on the umbrella, food and drinks. B. the $12 she spent on the umbrella, food and drinks. C. the value she places on seeing the movie. D. only $0 because she would have spent $12 to go to the movie.
In the above figure, a regulation requiring average cost pricing would force the firm to produce at output level
A. Q1. B. Q2. C. Q3. D. Q4.