Suppose that Jasper buys 35 quarts of bottled water each month when the price per quart is $1 . When the price declines to $0.60 per quart he buys 45 quarts each month. Find Jasper's price elasticity of demand for water?
a. -0.25
b. -0.50
c. -0.75
d. -1.00
b
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The HPV vaccine protects against human papillomavirus (HPV) that causes cancer. It protects both the person getting the vaccine and the sexual partners of that person
To encourage the efficient number of people to be vaccinated the government could A) give producers a subsidy equal to the private marginal benefit. B) give consumers a voucher equal to the marginal external benefit. C) impose a tax equal to the marginal social benefit. D) impose a tax equal to the marginal external benefit.
If a good has an income elasticity of demand greater than 1, one might classify that good as
A) a necessity. B) a luxury. C) unusual. D) inelastic.
Which of the following is unique to perfect competition?
a. The individual firm cannot earn economic profit in the long run. b. It is easy for new firms to enter the industry. c. The market demand curve slopes downward. d. The demand curve facing an individual firm is perfectly elastic. e. The firms in the industry produce a homogeneous product.
Use the following formula to answer the indicated question: Welfare benefit = Maximum benefit - Wages Suppose Parker works 2,000 hours per year at a wage of $12 per hour. If the state maximum welfare benefit is $14,000 per year, based on the welfare formula given, Parker's welfare benefit will be
A. Zero. B. $14,000. C. $7,000. D. $28,000.