If the demand for iPods is price elastic, then
A) the percentage change in quantity demanded is greater than the percentage change in price (in absolute value).
B) the percentage change in quantity demanded is less than the percentage change in price (in absolute value).
C) the percentage change in quantity demanded is equal to the percentage change in price.
D) quantity demanded is not responsive to changes in price.
Answer: A
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A socially-optimal price regulation will NOT work if:
A) marginal cost is less than average total cost. B) marginal cost is less than average fixed cost. C) marginal cost is greater than average total cost. D) marginal cost is greater than average fixed cost.
Referring to the graph above, an economic variable that had peaked in December 1912, November 1914, and February 1918 is likely a ________ variable
A) leading countercyclical B) leading procyclical C) lagging countercyclical D) lagging procyclical E) none of the above
The elasticity of demand for gasoline has been estimated to be ?2.0, and the standard error is 0.25. The t-statistic for the estimated elasticity of demand for gasoline is:
A. 0.5, indicating a statistically significant elasticity estimate at the 95 percent confidence level. B. 8, indicating a statistically insignificant elasticity estimate at the 95 percent confidence level. C. ?8, indicating a statistically significant elasticity estimate at the 95 percent confidence level. D. ?0.5, indicating a statistically insignificant elasticity estimate at the 95 percent confidence level.
If you spend a large portion of your income on a good,
A) supply of that good would be price elastic. B) demand for that good is more elastic than if you spent a smaller portion of your income on the good. C) supply of that good is price inelastic. D) demand for that good is less elastic than if you spent a smaller portion of your income on the good. E) the good must be able to be produced at a constant (or gently rising) opportunity cost.