Suppose the Good Food supermarket increases the price of a pound of bananas from $.75 to $1.25 and finds that the quantity of bananas it sells per month drops from 1,500 to 1,000 . The price elasticity of demand coefficient for bananas in this price range is:
a. 0.80 b. 3.00.
c. 2.00 d. 0.50.
a
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Suppose firms in Hong Kong can produce 40,000 plastic dolls or 80,000 squirt guns each week, while firms in Taiwan can produce 40,000 plastic dolls or 40,000 squirt guns each week. Therefore
A) People in Hong Kong sacrifice two dolls for every squirt gun produced. B) People in Taiwan sacrifice two dolls for every squirt gun produced. C) People in Hong Kong sacrifice 2 squirt guns for every doll produced. D) none of the above are true.
Janelle spends all of her income on songs from iTunes ($1 each) and applications ($5 each) for her iTouch. At current prices, she makes her best affordable choice and purchases 20 songs and 4 applications
Suppose, for a limited time only, applications are buy-one, get-one-free and she purchases 30 songs and 4 applications. Which of the following statements is TRUE? A) For songs, the substitution effect just equals the income effect. B) For songs, the income effect is stronger than the income effect for applications. C) For applications, the substitution effect is stronger than the income effect. D) For applications, the income effect is stronger the income effect for songs.
Which statement is most TRUE about the impact of unions on wage levels in the United States?
A) Unions have had no impact on the wage levels of their workers. B) Unions have tended to increase the hourly wage rates of their members relative to nonunion workers by an average of about $3.20. C) Unions have contributed to increased income inequality in the United States by raising corporate profits. D) The union/nonunion wage differential tends to decrease during a recession.
Suppose that one worker can produce 15 cookies, two workers can produce 40 cookies together, and three workers can produce 75 cookies together. What is the marginal product of the 2nd worker?
A. 20 cookies B. 35 cookies C. 40 cookies D. 25 cookies