Generally, expenses on toothpaste are a small part of a consumer's budget, so the demand for toothpaste is more likely to be
A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly elastic.
B
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Use the following graph for a market to answer the question below.
Which of the following would best explain why the shift in demand from D1 to D2 would cause price to rise from P1 to P2?
A. After the shift in the demand, there would be a surplus at price P2. B. After the shift in the demand, there would be a shortage at price P1. C. After the shift in the demand, there would be a surplus at price P1. D. After the shift in the demand, there would be a shortage at price P2.
A price-taking firm's variable cost function is C = Q3, where Q is the output per week. It has an avoidable fixed cost of $1,024 per week. Its marginal cost is MC = 3Q2. What is the profit maximizing output if the price is P = $192?
A. 0 or 5.33 or 8 B. 5.33 or 8 C. 0 or 5.33 D. 0 or 8
A price ceiling is typically imposed on a market because of ___________ and it creates _______
a. a chronic excess demand; an unacceptable price increase b. an unacceptable price increase; chronic excess demand c. an unacceptable price decrease; chronic excess demand d. an unacceptable price decrease; chronic excess supply e. an unacceptable price increase; chronic excess supply
Other fundamental things being equal, an increase in the exchange-rate value of the domestic currency will cause the current account to
A. become smaller than the (nonofficial) financial account. B. move toward a deficit. C. move toward a long-run equilibrium. D. become more unbalanced.