Refer to the data. The price elasticity of demand is relatively elastic:
Answer the question on the basis of the following demand schedule:
A. in the $6-$4 price range.
B. over the entire $6-$1 price range.
C. in the $3-$1 price range.
D. in the $6-$5 price range only.
A. in the $6-$4 price range.
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If you purchase a $100,000 interest-rate futures contract for 110, and the price of the Treasury securities on the expiration date is 106, your ________ is ________
A) profit; $4000 B) loss; $4000 C) profit; $6000 D) loss; $6000
Which of the following is NOT a characteristic of a market in equilibrium?
A. Buyers can buy as many units as they want at the equilibrium price. B. Neither buyers nor sellers want the price to change. C. Sellers can sell as many units as they want at the equilibrium price. D. There is neither excess supply nor excess demand.
If the economy relies entirely on the market mechanism to answer the WHAT, HOW, and FOR WHOM questions, it tends to
A. Overproduce goods that yield external benefits and overproduce those that generate external costs. B. Underproduce goods that yield external benefits and underproduce those that generate external costs. C. Overproduce goods that yield external benefits and underproduce those that generate external costs. D. Underproduce goods that yield external benefits and overproduce those that generate external costs.
Describe in words how one can recognize the market equilibrium point in a graph of a demand schedule and a supply schedule
Please provide the best answer for the statement.