The determinants of price elasticity of demand include:
A. availability of substitutes, cost relative to benefit, and scope of market.
B. degree of necessity, cost relative to income, scope of market, and adjustment time.
C. availability of complements, cost relative to income, and scope of market.
D. cost relative to income, scope of demand, and adjustment time.
B. degree of necessity, cost relative to income, scope of market, and adjustment time.
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A monopolistically competitive firm and a monopoly are alike because both I. face downward sloping demand curves. II. have marginal revenue curves that lie beneath their demand curves. III. can make an economic profit in the long run
A) I only. B) I and II. C) I, II, and III. D) I and III.
The economy is in long-run equilibrium when ________ and ________
A) real GDP equals potential GDP; the unemployment rate equals zero B) the output gap equals zero; the inflation rate equals the target inflation rate and the expected inflation rate C) the output gap is at its maximum; the inflation rate equals the target inflation rate and the expected inflation rate D) the unemployment rate equals the natural rate of unemployment; the inflation rate equals zero
If Darby values a soccer ball at $50, and she pays $40 for it, her consumer surplus is $10
a. True b. False Indicate whether the statement is true or false
Producer surplus is measured as the area
A. below the demand curve and above the market price. B. below the supply curve and above the market price. C. above the supply curve and below the market price. D. above the demand curve and below the market price.