A price elasticity of demand of -0.67 implies
a. Demand is inelastic
b. Demand is elastic
c. Demand is unitary elastic
d. Demand is perfectly elastic
a
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"A reduction in gasoline prices caused the demand for gasoline to increase. The lower gas prices also led to an increase in demand for large cars, causing their prices to rise." These statements
What will be an ideal response?
A government report that makes working in a particular industry more attractive to workers will most likely ________ the number of workers hired in that industry, and ________ the wage paid to those workers.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease
Related to the Economics in Practice on page 79: If a hurricane results in the supply of hotel rooms decreasing and the demand for hotel rooms increases, the equilibrium price for hotel rooms ________ and the equilibrium quantity of hotel rooms ________.
A. may increase, decrease, or stay the same; will decrease B. will increase; will decrease C. may increase, decrease, or stay the same; may increase, decrease, or stay the same D. will increase; may increase, decrease, or stay the same
Suppose Bright Orange is large firm that grows and harvests oranges. Each orange yields 2 ounces of orange juice and exactly one orange peel. The market for oranges is perfectly competitive and Bright Orange sells the orange juice to juice distributors and the orange peels to fragrance companies. At a quantity of 400,000 oranges, juice distributors will pay $0.04 per ounce of orange juice and
fragrance companies will pay $0.15 per orange peel. At the quantity of 400,000 oranges, what is the market equilibrium price of an orange? A) $0.11 B) $0.25 C) $0.23 D) $0.19