When the price of tacos rises 4 percent, the quantity demanded decreases 10 percent. What is the price elasticity of demand for tacos?
A) 40.0
B) 25.0
C) 0.4
D) 2.5
E) 10.0
D
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Refer to Figure 18.3. After trade and specialization begin, the maximum amount of scooters that Livonia can consume is
A) 120. B) 100. C) 80. D) 40.
Cost-price pricing typically does not result in profit-maximization. As a result, economists have two views of cost-plus pricing. One of these views is
A) cost-plus pricing is a good way to approximate the profit-maximizing price when marginal revenue or marginal cost is difficult to determine. B) cost-plus pricing is more likely to lead to profit-maximization for monopolistically competitive firms than for oligopoly firms. C) cost-plus pricing is more likely to result in profit-maximization the more elastic the firm's demand curve is. D) cost-plus pricing is more likely to lead to profit-maximization for large firms than for small firms.
Smoothing a time series of observations
A) is a form of statistical cheating. B) is used to reveal an underlying pattern in the data. C) renders the resultant forecast unusable. D) allows statisticians to use less data than would otherwise be required.
The goals of equity and ________________ are sometimes in conflict.
A. fairness B. efficiency C. capital