At a price of $100, Beachside Canoe Rentals rented 11 canoes. When it increased its rental price to $125, 9 canoes were rented. Calculate the absolute value of the price elasticity of demand for canoe rentals using the midpoint formula
A) 2
B) 1.25
C) 0.9
D) 0.75
C
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Refer to the above figure. Medicare subsidies have increased the price of medical services to Ps. The perceived price on the part of consumers is
A) Ps. B) P0. C) Pd. D) undetermined without more information.
At what phase of the business cycle does the natural rate of unemployment occur?
a. at the peak during a boom b. at the midpoint between a recession and a boom c. at the trough during a recession d. never because it is purely hypothetical
One problem with the effectiveness of Pigovian taxes is:
A. the tax does not directly compensate those who are affected by the externality. B. knowing whether to impose it on the consumer or producer. C. the tax is always used to benefit those who bear the externalities. D. none of the above is a problem of Pigovian taxes.
What has been the recent view of antitrust laws?
What will be an ideal response?