A grocery store put salt on sale but found that total revenues fell. This can be explained by which of the following?
A. The demand for salt is inelastic.
B. The demand for salt is unitary elastic.
C. The demand for salt is very elastic.
D. The demand curve for salt is vertical.
Answer: A
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A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
Assume that you are a plaintiff and have won a structured settlement from a lawsuit that entitles you to $1 million each year over the next ten years
An attorney from the defense team approaches you afterward and offers you $6 million in exchange for your settlement. How would you go about evaluating whether this is a good deal for you or not?
Alex is willing to pay $10, and Bella is willing to pay $8, for 1 pound of ribeye steak. When the price of ribeye steak increases from $9 to $11,
a. Alex experiences a decrease in consumer surplus, but Bella does not. b. Bella experiences a decrease in consumer surplus, but Alex does not. c. both Bella and Alex experience a decrease in consumer surplus. d. neither Bella nor Alex experiences a decrease in consumer surplus.
Suppose that on Monday, a Big Mac cost $3.00 in the United States and 310 Japanese yen in Japan. On Monday, the exchange rate was $1 = 85 yen. According to the purchasing power parity theory, the yen was __________ by approximately __________ percent
A) overvalued; 22 B) undervalued; 40 C) overvalued; 29 D) undervalued; 22 E) overvalued; 18