A government wants to reduce electricity consumption by 40%. The price elasticity of demand for electricity is -10. The government must ________ the price of electricity by ________.
A. raise; 4.0%
B. lower; 0.25%
C. raise; 0.25%
D. raise; 1.25%
Answer: A
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Relative scarcities are indicated by
A) supply and demand being out of equilibrium. B) surpluses. C) excess demand and excess supply. D) relative prices.
Combinations of goods outside the production possibilities curve
a. are unattainable given society's technology and resources b. are combinations that have already been consumed c. go beyond basic necessities d. result from involuntary unemployment e. are the result of economic recessions
In order to maximize profit, a firm that produces its output in two plants will produce the level of total output at which the last unit of output produced adds the same amount to total revenue as to the
A. second plant's total cost. B. first plant's total cost. C. firm's total cost D. both a and b
________: level of output at which average total costs equal average revenue or market price
Fill in the blank(s) with correct word