A good that takes up a very large percentage of the consumer's budget will tend to have
a. an elastic demand.
b. a perfectly elastic demand.
c. an inelastic demand.
d. an upward-sloping demand curve.
e. very many substitutes.
A
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When the price of a sweet roll is $2, the bakery sells 300 rolls per week. If it raises the price to $3, then it sells 150 rolls per week. Based on this, the price elasticity of a sweet roll between these prices is
A. 0.40. B. 1 C. 1.67. D. 0.67.
Holding the real money supply constant, an increase in real money demand will reduce interest rates
Indicate whether the statement is true or false
According to the graph shown:
A. consumer surplus is greater than producer surplus.
B. producer surplus is greater than consumer surplus.
C. total surplus is smaller than consumer surplus.
D. total surplus is smaller than producer surplus.
The marginal tax rate refers to the tax rate charged on the:
A. last dollar a taxpayer earns. B. income earned from buying investments and selling them at a higher price. C. earnings of individuals. D. value of a good or service being purchased.