Figure 7-11
Refer to . As price falls from PA to PB, we could use the three demand curves to calculate three different values of the price elasticity of demand. Which of the three demand curves would produce the smallest elasticity?
a.
D1
b.
D2
c.
D3
d.
All of the above are equally elastic.
c
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The two major types of finance company are
A) captive and specialty. B) public and private. C) consumer and commercial. D) insured and uninsured.
Which of the following offers the most likely explanation of why average total cost is falling in a cereal factory?
a. Production bottlenecks and equipment breakdowns have stalled production. b. The production facility was designed for a lower level of output. c. The wholesale prices of grains and fruit have risen due to market demands. d. The cost of producing an additional box of cereal is less than the factory’s average total cost.
If one looks at U.S. Census data and finds that the average white salary is $39,000 while the average black salary is $36,000, which of the following is not likely to be a significant cause of this difference given U.S. labor market demographics?
A. Whites are more likely than blacks to own their own business. B. Whites are more inclined than blacks to work part-time. C. Whites are more likely than blacks to hold positions in upper management. D. Blacks have less education than whites. E. Discrimination exists in the labor market.
An economy wants to increase its current level of investment, it must:
A. sacrifice future consumption. B. print more money. C. offer more stocks and bonds to financial investors. D. sacrifice current consumption.