The price elasticity of demand for widgets at any particular price is determined by
A. whether widgets are luxuries or necessities.
B. how much of their budgets do consumers spend on widgets.
C. whether there are any good substitutes for widgets.
D. All of the responses are correct.
Answer: D
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Suppose two countries use different combinations of inputs, such as labor and capital, to produce the same product. This implies all of the following except that
A) one country is more efficient in the production of the good than the other. B) the inputs are not equally productive in the two countries. C) the prices of the inputs are not the same in the countries. D) the two countries use different technologies to produce the product.
A popular shoe company has a 'buy one, get one half price' offer in which customers who purchase one pair of shoes can purchase a second pair at half price. This is an example of ________ and is ________.
A) price discrimination; only illegal if the practice substantially lessens competition or tends to create a monopoly B) conditional sales; only illegal if the practice substantially lessens competition or tends to create a monopoly C) price discrimination; always illegal per se D) conditional sales; always illegal per se
Coldest Ice produces ice packs for use in lunch boxes. All of the following could be accidents for Coldest Ice except which one?
A) the ice packs failing to meet safe food temperatures B) the ice packs infringe on another firm's patent C) a successful audit D) the ice packs leak
Refer to the above table. What is the absolute price elasticity of demand when a price rises from $9 to $9.50?
A) 0.35 B) 0.55 C) 2.57 D) 2.85