If a two percent increase in the price of bananas leads to a two percent decrease in the quantity of bananas demanded, then the demand for bananas is
A. perfectly inelastic.
B. inelastic.
C. unit-elastic.
D. elastic.
Answer: C
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A) 0 B) 100 C) 200 D) 500
Refer to Scenario 1 . If you start the course in such a way that each exam score is better than your previous average what should happen to your average score?
What would happen to your average if it was below your previous exam score? Explain.
Basic supply and demand analysis indicates that having firms rather than the government provide health insurance to workers
A) changes neither the composition of the compensation that firms pay nor its level. B) changes both the composition of the compensation that firms pay and its level. C) changes the composition of the compensation that firms pay, but does not change its level. D) does not change the composition of the compensation that firms pay, but does change its level.
In a Stackelberg oligopoly
A) the leader moves first, and the follower chooses its price in the second stage of the game. B) the leader moves first, and the follower chooses its output in the second stage of the game. C) both firms act simultaneously, but one chooses price and the other output level. D) there is no Nash equilibrium.