Yeinsen Cookies produces cookies famous for their unique flavors. The elasticity of demand for cookies is equal to 0.62 when the price is $4.20 per pound. If the price of cookies increases to $4.50 per pound, which of the following is most likely to happen?
a. The total revenue earned by the company will fall.
b. The total revenue earned by the company will rise.
c. The quantity demanded of the cookies will increase.
d. The quantity supplied of the cookies will decrease.
b
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Wages for workers producing iPods and similar products will rise next year. Walkman Watch asks you to predict the effect of this change in next year's market for iPods. You predict that the major effect will be that the
A) demand curve for an iPod will shift rightward. B) demand curve for an iPod will shift leftward. C) supply curve for an iPod will shift leftward. D) supply curve for an iPod will shift rightward.
The general form for discounting is
A) PV = FVt (1 + i)t. B) PV = FVt /(1 + i)t. C) PV = (1 + i)t/FVt. D) PV = 1/(1 + it)t.
Which of the following is a positive economic statement?
A) People should not buy SUVs. B) The government should mandate electric automobiles. C) Scarcity necessitates that people make trade-offs. D) Foreign workers should not be allowed to work for lower wages than the citizens of a country.
Across different output levels, a firm can experience both economies and diseconomies of scale.
Answer the following statement true (T) or false (F)