Distinguish a direct and an inverse relationship. Provide an example of each type of relationship.
What will be an ideal response?
A direct relationship between two variables means an increase in the value of the independent variable will cause an increase in the value of the dependent variable; and vice versa. An example would be the relationship between the selling price of a good and the amount of the good put up for sale by producers. An inverse relationship between two variables means an increase in the value of the independent variable will cause a decrease in the value of the dependent variable; and vice versa. An example would be the relationship between the price of a good and the amount of the good consumers want to purchase.
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Put the following products in order from the least to the most elastic demand: Domino's pizza, pizza, and pizza from Domino's on the corner of Main Street and 8th Avenue
a. Domino's pizza; pizza; pizza from Domino's on the corner of Main Street and 8th Avenue b. pizza; pizza from Domino's on the corner of Main Street and 8th Avenue; Domino's pizza c. pizza; Domino's pizza; pizza from Domino's on the corner of Main Street and 8th Avenue d. pizza from Domino's on the corner of Main Street and 8th Avenue; Domino's pizza; pizza
Which of the following rules is most consistent with profit maximization?
a. expand output when MR < MC b. reduce output when MR > MC c. expand output when TR > TC d. reduce output when TR > TC e. expand output when MR > MC
Supplies of drinking water depend on
a. ground water b. surface water c. water resources protected by the Clean Water Act d. all of the above e. none of the above
The greatest expansion of the automobile industry occurred in the decade of the ______.
Fill in the blank(s) with the appropriate word(s).