Figure 3-18
Refer to . Which area represents the increase in consumer surplus when the price falls from P1 to P2?
a.
ABD
b.
ACF
c.
DEF
d.
BCFD
d
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Assuming price elasticity of demand is reported as an absolute value, an elastic demand has an elasticity:
A. greater than one. B. less than one. C. exactly one. D. greater than zero and less than one.
An increase in the demand for shoemakers will increase the demand for shoes
a. True b. False
If a 10 percent increase in the price of tomatoes leads to a 20 percent decrease in quantity demanded, then the price elasticity of demand for tomatoes, , equals -2
a. True b. False Indicate whether the statement is true or false
According to the text, U.S. manufacturing data show that
a. the economy is rapidly becoming more concentrated into the hands of the few b. the economy today is less concentrated than it was in 1865, just after the Civil War c. concentration in the economy has remained fairly stable over the past 40 years d. the U.S. economy is much more concentrated than most other industrialized nations of the world e. concentration has fallen rapidly over the past 40 years