According to a study of the price elasticities of products sold in supermarkets, the price elasticity of demand for toothpaste is estimated at -0.45. Which of the following could explain why the price elasticity of demand for toothpaste is so low?
A) Toothpaste is heavily endorsed by dentists. B) Toothpaste is relatively inexpensive.
C) There are few close substitutes for toothpaste. D) The toothpaste industry is highly competitive.
C
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In the one-input model, profit is always maximized where marginal revenue product is equal to the input price.
Answer the following statement true (T) or false (F)
If a country faces action under Section 301 of the U.S. Trade Act of 1974, it means that the country has
A) exceeded average import growth by more than 301 percent. B) exceeded average export growth by more than 301 percent. C) tariffs that are above 301 percent. D) been charged by the United States with systematically engaging in unfair trade practices. E) been charged by the WTO with violating its trade obligations.
If the relative price of one unit of good X is 5 units of good Y, then it follows that the absolute price of good X can be __________ and the absolute price of good Y can be __________
A) $20,000; $10,000 B) $40,000; $8,000 C) $30,000; $5,0000 D) $5,000; $40,000 E) a and c
The intersection of the IS and LM curves shows
A. the short-run trade balance. B. that the balance of payments is in equilibrium. C. the short-run equilibrium interest rate and the output level in the economy. D. the long-run equilibrium inflation rate and the natural rate of unemployment in the economy.