Consider the linear downward-sloping demand curve and the concept of elasticity. Which of the following statements is true?
a. As quantity demanded increases, so does buyers' sensitivity to price.
b. When the price elasticity of demand is 1, consumers are indifferent to price changes.
c. The ratio of price to quantity demanded measures the price elasticity of demand.
d. As the price of a good increases, the price elasticity of demand increases.
e. When an individual buys more of a good, his or her price elasticity of demand for the good increases.
D
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As the number of advertisements of a firm increases from 100 to 500, its sales increases from $1,000 to $10,000. If this information is plotted on a line chart, the slope of the line equals:
A) $22.5. B) $0.044. C) $30.33. D) $20.
The union participation rate in the United States is
a. highest among government employees b. highest among private sector workers c. highest in the smokestack industries d. highest in the service sector e. higher than in Sweden
Opportunity cost is the value of the next best alternative that is given up
a. True b. False Indicate whether the statement is true or false
Initially a bank has a required reserve ratio of 20 percent and no excess reserves. If $5,000 is deposited into the bank, then initially, ceteris paribus,
A. Required reserves will increase by $5,000. B. This bank can increase its loans by $5,000. C. This bank can increase its loans by $4,000. D. Total reserves will increase by $4,000.