Which of the following is NOT a determinant of the price elasticity of demand?
A. the share of the budget spent on the item
B. the time the consumer has to adjust to the price change
C. the availability of potential substitutes
D. the cost to produce the product
Answer: D
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A consequence of a negative externality is that social costs __________ private costs, and the socially optimal level of output __________.
A. equal; is not equal to social costs or private costs B. do not equal; is obtained C. do not equal; is not obtained D. equal; is obtained E. equal; is not obtained
If 50 units are sold at a price of $20 and 80 units are sold at a price of $15, what is the absolute value of the price elasticity of demand? Use the midpoint formula
A) 0.17 B) 0.62 C) 1.62 D) 5
Refer to the above figure. What are the price and quantity if this monopolist is required to use average cost pricing?
A) P5, Q1 B) P3, Q3 C) P2, Q1 D) P1, Q4
The value of depreciation of the economy's capital stock, you find the inflation 10 %, nominal 14, economic 8 %. What is real?
A. 14 B. 6 C. 24 D. 4 E. 2