When the price of candy bars increased from $0.45 to $0.55, the quantity demanded changed from 21,000 per day to 19,000 per day. In this price range, the price elasticity of demand coefficient (based on the midpoint formula) for candy bars is
A. -1.
B. -0.5.
C. -2.
D. -0.18.
Answer: B
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If a firm is in the short run,
a. all its resources are variable. b. it is planning its output for six months. c. it is not possible for a firm to be efficient. d. at least one of the firm’s resources cannot be varied.
Economists are still puzzled why growth rates in the United States fell from 1973 to 1995.
Answer the following statement true (T) or false (F)
The income that individuals have after personal income taxes have been paid is called
A. disposable personal income. B. national income. C. gross domestic income. D. personal income.
Which of the following goods would be most likely to feature an income elasticity of zero?
a. tickets to a championship football game b. insulin c. orange juice d. cigarettes