At price of $1.30 per pound, a local apple orchard is willing to supply 150 pounds of apples per day. At a price of $1.50 per pound, the orchard is willing to supply 170 pounds of apples per day. Using the midpoint method, the price elasticity of supply is about
a. 1.14.
b. 1.00.
c. 0.875.
d. 0.50.
c
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A bank's net interest margin is
A) total interest income minus total interest expense. B) net interest income as a percent of bank equity. C) net interest income as a percent of total bank assets. D) net interest as a percent of total income.
If marginal revenue is less than price for a firm, it must be true that the firm
a. is a monopoly b. is in perfect competition c. is in monopolistic competition d. faces a perfectly elastic demand curve e. faces a downward-sloping demand curve
If diminishing marginal returns is in effect
A) marginal costs fall. B) marginal costs rise. C) average costs fall. D) average revenue is constant.
When we add a personal income tax to the macroeconomic model, the
a. multiplier becomes larger. b. multiplier becomes smaller. c. expenditures schedule shifts upward. d. expenditures schedule becomes steeper.