Suppose that Victoria and her friends are running a fundraiser by selling donuts. They want to know what will happen to their revenue if they increase the price of each donut from $0.80 to $1. What concept do they need to apply to find out their expected revenue?
A. price elasticity of supply
B. price elasticity of demand
C. cross elasticity of demand
D. income elasticity of demand
Answer: B
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Refer to Figure 16-1. What is the price charged under perfect price discrimination?
A) P3 B) P4 C) a range of prices corresponding to the demand curve from P3 and above D) a range of prices corresponding to the demand curve from P4 and above
Suppose there are 1000 identical wheat farmers. For each, TC = 10 + q2. Market demand is Q = 600,000 – 100p. Derive the short-run equilibrium Q, q, and p. Does the typical firm earn a short-run profit?
What will be an ideal response?
Which of the following percentages is closest to the long-run average growth rate for the U.S.? a. 15 percent. b. 10 percent. c. 5 percent
d. 3 percent.
As more labor is hired in the short run, diminishing returns are observed because:
A. The new workers are lazy. B. The new workers have less capital and land to work with. C. All the workers begin to socialize more and work less. D. The new workers are less skilled.