If the absolute value of the slope of the demand curve is 0.25, price is $8 per unit, and quantity demanded is 12 units, then demand for this good is:
A. perfectly elastic.
B. inelastic.
C. elastic.
D. unit elastic.
Answer: C
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Refer to the scenario above. The best approach to play this game is to use:
A) a dominant strategy. B) backward induction to come to a decision. C) a credible commitment to influence the payoffs of the game. D) a mixed strategy.
A negative externality clearly occurs when
A) a person's action unintentionally benefits other people. B) a person behaves in the public interest. C) a person's action unintentionally imposes costs on other people. D) a person couldn't care less about anybody else.
Rising labor productivity means that less labor is needed to produce the same level of output
a. True b. False Indicate whether the statement is true or false
Inventories are goods that can be considered as "purchased" by
a. the firms that produce them. b. the consumers that ultimately buy them. c. the government since they are tax deductible. d. no one since they are not counted as part of GDP.