Measuring the price of gasoline in dollars, an economist calculates the price elasticity of demand to be .5. What would the price elasticity of demand be if the economist had chosen to measure the price of gasoline in pennies rather than dollars?
A. .5
B. 50
C. .005
D. .05
Answer: A
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Equilibrium GDP will not exist where output exceeds aggregate demand because businesses will notice that
A. their profits are positive. B. inventory stocks are building up. C. inventory stocks are being depleted. D. their level of depreciation is rising.
If a monopolist's marginal revenue is less than zero over a range of output, then price elasticity of demand must be: a. greater than one. b. equal to one
c. less than one. d. equal to zero.
If the country represented in this graph now can produce a maximum of 12 units of guns if it shifts all resources to gun production and could produce a maximum of 9 units of butter if it used all its resources for butter production then it would have experienced __________________.
Based on the graphs showing price discrimination in movie ticket prices, the demand curve for the matinee ______ the demand curve for the evening show.
a. has a steeper slope than
b. is less elastic than
c. is more elastic than
d. is higher than