Assume the demand curve for skirts in Europe is P = 100 -QE (or Qe=100 - P), while the U.S. demand is P = 100 -¼QUS. (or Qus = 400 - 4P). Over the range of prices, which demand is more price elastic?
A. Demand in the United States is more elastic.
B. Demand in the United States and Europe has the same elasticity for any price level.
C. It depends on the price level.
D. Demand in Europe is more elastic.
Answer: B
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A) $30. B) $150. C) $105. D) Cannot be determined from the above information
The table gives data on the production and prices in a small economy. Use 2012 as the base period
a. What does nominal GDP equal in 2012? b. What does real GDP equal in 2012? c. What does nominal GDP equal in 2013? d. Using the chained-price method, what does real GDP equal in 2013?
Agreement between firms in an industry to set a certain price or to share a market is
a. a coordinating practice. b. a competitive practice. c. the substitution effect. d. a collusive practice.
Collusion benefits cartel members by ______ in their industry.
a. reducing uncertainty b. increasing competition c. reducing prices d. increasing output