Refer to the information provided in Figure 5.3 below to answer the question(s) that follow.
Figure 5.3Refer to Figure 5.3. Using the midpoint formula, if the price of a gardenburger increases from $7 to $9, the price elasticity of demand equals ________ and the increase results in a(n) ________ in total revenue.
A. -0.5; decrease
B. -8; decrease
C. -0.375; increase
D. -2.67; decrease
Answer: D
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Which of the following will be included in the income-based method of national accounting?
A) A firm's expenditure on raw materials B) A student's expenditure on education C) A consumer's expenditure on a imported car D) A worker's retirement benefits
In an independent private values sealed-bid second-price auction, if a participant bids more than their valuation this ________ an inferior strategy because the high bid ________.
A) is; cannot affect the amount paid or raise the amount paid B) is; can only lower the amount paid C) is not; can only lower the amount paid D) is not; cannot affect the amount paid or raise the amount paid
When the economy is operating at an output beyond its full-employment potential, the
a. actual level of unemployment will exceed the natural rate of unemployment. b. actual level of unemployment will equal the natural rate of unemployment. c. strong demand for resources will place upward pressure on resource prices. d. aggregate demand will increase until full employment is restored.
A monopolistically competitive firm is currently charging a price of $10 and producing 12,000 units/month. It faces monthly fixed costs of $15,000 and has an average variable cost of $6/unit. In the long run, we would expect:
a. The firm to go out of business b. The price will rise and output will fall c. The price will fall and output will fall d. The price will fall and output will rise