When the price of a pound of oranges is $1.00, 7500 pounds of oranges are demanded. When the price of a pound of oranges decreases to $0.80, 10,000 pounds of oranges are demanded. In this price range the demand for oranges is
A. elastic.
B. perfectly elastic.
C. unit elastic.
D. inelastic.
Answer: A
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If government spending and the price level increase, then
A) the interest rate decreases, consumption increases, and investment spending increases. B) the interest rate decreases, consumption declines, and investment spending declines. C) the interest rate increases, consumption declines, and investment spending declines. D) the interest rate increases, consumption increases, and investment spending increases.
As market price increases in the short run, a profit-maximizing firm in a perfectly competitive market will expand output along its:
a. marginal cost curve. b. average total cost curve. c. average variable cost curve. d. market demand curve.
Refer to Scenario 18.1. If the fishermen are given the right to clean water,
A) the outcome will be more efficient than if the factory is given the right to use the water as it sees fit. B) the outcome will be less efficient than if the factory is given the right to use the water as it sees fit. C) the efficient outcome will occur no matter who is given which property right, and the individual gains will be the same in each case. D) the factory will be forced to shut down. E) the efficient outcome will occur no matter who is given which property right, but how that maximum gain is split will be determined during bargaining.
Bans and quotas ___________ in situations where it is difficult or costly for authorities to monitor and punish rule-breakers.
A. often succeed B. sometimes succeed C. rarely succeed D. always succeed