If the demand elasticity for corn is -0.5, then a 5% increase in the quantity demanded to the market will result in a price change of
A. +5%
B. +10%
C. -5%
D. -10%
Ans: D. -10%
You might also like to view...
The presence of union wages leads to
A) a fall in the real wage rate as more people are hired. B) less job search as more workers are hired. C) job rationing because the real wage exceeds the equilibrium real wage. D) a fall in the real wage rate as fewer people are hired. E) lower unemployment because workers do not want to lose the high union wage they are being paid.
The above figure gives your budget line between CDs and magazines. If the price of a magazine increased, then the budget line
A) shifts outward and the slope does not change. B) rotates inward with no change in the horizontal intercept. C) rotates inward with no change in the vertical intercept. D) rotates outward with no change in the vertical axis.
If you were to ask your employer for a raise, which of the following would be your most effective argument?
A) "My marginal product is greater than my current wage." B) "I am willing to work more hours each week." C) "Increases in my productivity have resulted in greater revenue and profits for your business." D) "I have a job offer at another firm that will pay me more than my current wage."
Refer to the above figure. The figure gives the payoff matrix for two individuals who are being accused of robbing a bank together. If Bob confesses, what is the best strategy for Harry?
A) Confess. B) Don't confess. C) Flip a coin to decide what to do. D) There is no best strategy.