When demand is elastic,
A. the percentage change in price is greater than the percentage change in quantity demanded.
B. price increases raise total revenue.
C. the buyer is sensitive to changes in price.
D. the elasticity coefficient is greater than zero, but less than one.
C. the buyer is sensitive to changes in price.
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Refer to the table above. For trade to occur along the lines of comparative advantage, wages in A relative to wages in B (measured in the same currency)
A) must be at least twice but less than 3 times as great. B) must be less than three times as small. C) must be greater than $2 but less than $3. D) Need more information to answer.
If the firm in Figure 17-4 above maintains its set price of P0, rather than dropping price to P1, it must be facing a "menu cost" of adjusting its price that exceeds
A) K - G. B) K + G. C) G - K. D) J. E) K.
Suppose the income tax rate is 0 percent on the first $10,000; 10 percent on the next $20,000; 20 percent on the next $20,000; 30 percent on the next $20,000; and 40 percent on all income above $70,000
Family A has income of $82,000 while Family B has income of $37,000. What are the marginal tax rates faced by the two families?
In 2009, the imaginary nation of Mainland had a population of 7,000 and real GDP of 210,000 . In 2010 the population was 7,300 and real GDP of 223,380 . Over the year in question, real GDP per person in Mainland grew by
a. 2 percent, which is high compared to average U.S. growth over the last one-hundred years. b. 2 percent, which is about the same as average U.S. growth over the last one-hundred years. c. 4 percent, which is high compared to average U.S. growth over the last one-hundred years. d. 4 percent, which is about the same as average U.S. growth over the last one-hundred years.