The price elasticity of demand can range between
A) zero and one.
B) negative infinity and infinity.
C) zero and infinity.
D) negative one and one.
C
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Which of the following statements is false?
A) There are fewer farms in this country today than there were earlier in this century. B) In 2000, there were 8 million farms in the United States. C) Bad weather reduces the supply of foodstuffs and leads to greater farmer total revenue, assuming demand for the foodstuffs is inelastic. D) b and c
Which of the following is likely to have the most inelastic price elasticity of demand?
A. Automobiles. B. Pickup trucks. C. The Hondas one Honda dealer sells. D. Hondas.
Because majority voting fails to incorporate the strength of the preferences of individual voters, it:
A. creates negative externalities. B. under some circumstances produces economically inefficient outcomes. C. leads to market failure. D. leads to politics dominated by special interest groups.
As the definition of products narrows (i.e., becomes more specific), the concentration ratio
A. is not valid. B. tends to increase. C. tends to decrease. D. does not change in any predictable manner.