The demand for heart surgery is price inelastic. So it follows that
A. changes in price do not affect the number of operations demanded.
B. the percentage change in price is less than the resulting percentage change in quantity demanded.
C. if the price of heart surgery increases, total expenditure by consumers on heart surgery will rise.
D. both a and b
E. all of the above
Answer: C
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Which statement holds true in the post-World War II era?
(a) There was a permanent increase in the percentage of working adult women with children. (b) Firms found it most profitable to treat women as individuals rather than groups. (c) Marriage bars returned. (d) Female participation in farming, common labor and craft work in the U.S. increased significantly.
To be effective, pure bundling requires firms to be able to separate consumers into separate markets
Indicate whether the statement is true or false
Jeffrey spends all of his income on warm-up suits and running shoes, and the price of a warm-up suit is four times the price per pair of shoes. Then, in order to maximize total utility, Jeffrey should
a. buy four times as many warm-up suits as pairs of running shoes b. buy four times as many pairs of running shoes as warm-up suits c. divide his income equally between warm-up suits and running shoes d. buy both items until the marginal utility of a warm-up suit is four times the marginal utility of a pair of running shoes e. buy both items until the marginal utility of a pair of running shoes is four times the marginal utility of a warm-up suit
Which of the following statements is true?
A. If foreign interest rates increase, the domestic interest rate remaining unchanged, there will be international financial repositioning toward domestic-currency assets and the domestic currency will appreciate. B. If the domestic interest rate rises, there will be international financial repositioning toward domestic-currency assets, thereby causing the domestic currency to appreciate. C. If the expected future spot exchange rate value of the foreign currency decreases, there will be international financial repositioning toward foreign-currency assets, thereby causing the domestic currency to depreciate. D. If the expected future spot dollar per euro exchange rate increases, there will be international financial repositioning toward the dollar-denominated assets thereby causing the euro to depreciate.