If income elasticity of demand for food is 1.55 it follows that
A) a 10 percent rise in the price of food lowers the quantity demanded of food by 15.5 percent.
B) if income rises by 10 percent, consumption of food rises by 15.5 percent.
C) if income rises by 10 percent, consumption of food falls by 15.5 percent.
D) a 1 percent rise in the price of food decreases the quantity demanded of food by 1.55 percent.
E) none of the above
B
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To raise the most tax revenue, governments should tax which of the following goods?
A. SUVs B. gasoline C. designer shoes D. sofas
Refer to the scenario above. If the economy is currently on F2 and produces Y3 level of output, a leftward shift of the labor demand curve with no change in productivity will cause output to ________
A) increase from Y3 to Y4 B) decline from Y3 to Y1 C) decline from Y3 to Y2 D) increase from Y3 to Y5
Labor costs $20 per worker and capital costs $100 per unit. Then, according to the above table, which of the following options for pizza production is economically efficient?
A) Option 1 B) Option 3 C) Option 4 D) Both options 1 and 3 are economically efficient.
Consider an industry that is made up of six firms with the following market shares: Firm A - 50%, Firm B - 20%, Firms C and D - 10% each, and Firms E and F - 5% each
What is the value of the Herfindahl-Hirschman Index and how will the industry be categorized? A) 2,500; mildly concentrated B) 3,150; highly concentrated C) 8,100; highly concentrated D) 10,000; effectively competitive