If the price of a good falls by 10% and the percentage decrease in the total amount consumers spend on the good is 15%, then the good is
A. perfectly inelastic.
B. unit elastic.
C. elastic.
D. inelastic.
Answer: D
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The following table shows cost data for a perfectly competitive firm.OutputAverage Fixed CostAverage Variable CostAverage Total CostMarginal Cost1$300$100$400$1002150752255031007017060475731488256080140108650901401407431031461828381191572349331381712831030160190361If the product price is $283, the per-unit economic profit at the profit-maximizing output is
A. $152. B. $76. C. $0. D. $112.
A low exchange rate for the dollar makes foreign currencies:
A. more expensive, raising the price of imports. B. more expensive, lowering the price of imports. C. cheaper, lowering the price of imports. D. cheaper, raising the price of imports.
If a check written on one bank is deposited in another bank
A. the money supply remains unchanged. B. the money supply decreases. C. the money supply increases. D. new reserves are created for the banking system.
Explain how we can estimate the shape of a person's indifference map by observing choices under different economic circumstances. Explain also why we will not be able to identify any non-convexities in tastes from our observations.
What will be an ideal response?