Suppose Colby buys 20 gallons of gasoline a week when gas costs $3.00 a gallon and only 18 gallons of gasoline when it costs $3.25 . What is Colby's elasticity of demand for gasoline?
a. -1.32
b. -1.02
c. -1.52
d. -1.42
a
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The table above gives the demand schedule for peas. Which of the following statements CORRECTLY describes the price elasticity of demand?
A) The price elasticity of demand is larger at point A than at point B. B) The price elasticity of demand is larger at point D than at point A. C) The price elasticity of demand is constant because the slope is constant. D) The price elasticity of demand increases moving from point A to point B to point C to point D to point E.
The rate of time preference is positive
a. only when interest rates are positive b. because interest rates are positive c. only when people save d. because people save e. because people prefer goods now to the same goods later
Which of the following practices is restricted by the antitrust laws of the United States?
a. Merger of smaller firms into a large firm b. Entry of new firms in the long run c. Standardization of products in a market d. Exit of non-performing firms in the long run e. Quality differentiation by competitive firms
What currency is traded the least in the foreign exchange market?
a. Chinese yuan b. U.S. dollar c. European Union euro d. Japanese yen