At the midpoint of a linear demand curve, the elasticity of demand is
A. one.
B. zero.
C. greater than one.
D. less than zero.
Answer: A
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The income elasticity of demand for movies in the United States is 3.41. If people's incomes decrease by 1 percent, what is the decrease in the quantity of movies demanded?
What will be an ideal response?
Refer to Exhibit 2-9. Who has the comparative advantage in the production of good B?
 ANSWER 5.png)
Refer to the information provided in Figure 23.4 below to answer the question(s) that follow.
Figure 23.4Refer to Figure 23.4. Suppose the consumption function for C1 = 20 + 0.5Y, the consumption function that best fits C3 is
A. C3 = 20 + 0.4Y. B. C3 = 20 + 0.8Y. C. C3 = 40 + 0.4Y. D. C3 = 40 + 0.5Y.
With a fixed amount of capital, 300 workers produce 9,000 cars. The average labor productivity is
A. 0.03. B. 3. C. 27. D. 30.