Suppose that the demand for digital cameras is elastic, and the supply of digital cameras is inelastic. A tax of $20 per camera levied on digital cameras will decrease the effective price received by sellers of digital cameras by
a. less than $10.
b. $10.
c. between $10 and $20.
d. $20.
c
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The Audubon Society currently allows three oil companies to extract natural gas on its Rainey Wildlife Sanctuary because
A) natural gas is more valuable than wildlife conservation. B) oil interests actually own the Audubon Society. C) the government required the leasing of natural gas rights under its power of eminent domain. D) the sanctuary must, by law, be used to promote the public interest. E) the sanctuary is the private property of the Audubon Society.
If demand increases and supply decreases, then equilibrium price must decrease, but equilibrium quantity is indeterminate
a. True b. False Indicate whether the statement is true or false
Ray has taken out a home equity loan so that he can redo his kitchen. Every month until the loan is paid off, Ray will make a payment to his bank. This best illustrates money’s function as a ______.
a. unit of account b. medium of exchange c. means of deferred payment d. store of value
If the absolute price elasticity of demand for movie tickets is 0.75, an increase in ticket prices will
A. increase total revenue. B. not change total revenue. C. not change the elasticity of demand. D. decrease total revenue.