If the cost of a market basket is $200 in 2006 and $230 in 2007, the price index for 2007 using 2006 as the base year is
A. 1.00.
B. 1.15.
C. 1.30.
D. 2.00.
Ans: B. 1.15.
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When labor productivity increases, the demand for labor curve ________ and the supply of labor curve ________
A) shifts rightward; shifts rightward B) shifts rightward; does not shift C) shifts leftward; shifts rightward D) shift s leftward; does not shift
The economy's marginal social benefit curve for a public good is calculated by adding the
A) marginal cost of all the suppliers at each quantity. B) quantities supplied by all the suppliers at each price. C) quantities demanded by all the individuals at each price. D) marginal benefits of all the individuals at each quantity.
When the price of toothpaste increases by 15 percent, the quantity of toothpaste demanded falls by 30 percent. Calculate the price elasticity of demand. Is the demand for toothpaste elastic, inelastic, or unit elastic?
What will be an ideal response?
Suppose a monopoly produces film and cameras. Consumers demand pictures, which require film and one camera
Two different types of consumers have the following demand for film, qA = 100 - 10p and qB = 80 - 10p. The monopoly cannot price discriminate in the market for film or the market for cameras, but it can bundle the products. The monopoly produces film at a constant marginal cost of $1 per roll. What price will the monopoly set for film and for cameras?