Refer to the above figure. Demand will be elastic when quantity is between
A) 0 and A.
B) 0 and B.
C) A and B.
D) B and C.
A
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Sharon buys some common stock in 1990 for $10,000 and sells it in 2000 for $15,000. During the same period, prices have risen by 75 percent. The net result of Sharon’s stock purchases is that she will
A. pay no taxes because she earned negative real capital gains. B. lose purchasing power and have to pay taxes anyway. C. earn a real capital gain of $5,000 plus 75 percent. D. earn a real capital gain of $15,000 minus 75 percent.
As gasoline prices increase, which of the following will happen?
a. Demand will increase. b. Supply will be reduced. c. Supply will increase. d. Demand will drop significantly.
Compared to the typical high-school graduate, the typical college graduate has greater human capital and thus more options for both low-skill and high-skill jobs. This is called:
A. the signaling effect of a college education. B. the learning effect of a college education. C. the discriminatory effect of a college education. D. All of these
Long-run equilibrium is characterized by zero profits in
A) monopolistic competition only. B) perfect competition only. C) both perfect competition and monopolistic competition. D) market structures in which there are barriers to entry.