Refer to the above figure. Suppose demand is D2 and then increases to D3. The change in economic rent is
A) zero.
B) area CIHF.
C) area CIGO.
D) area BJC.
B
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Suppose a decrease in supply raises the price from $4.00 to $5.50 and decreases the quantity demanded from 2,000 to 1,500. Using the midpoint method, the elasticity of demand equals
A) 2.10. B) 1.11. C) 0.90. D) 0.72. E) None of the above answers is correct.
If the price of a good rises by 10% and the quantity purchased falls by 5%, then demand for the good is ________ and total spending on the good will ________
A) elastic; increase B) inelastic; increase C) elastic; decrease D) me and so inelastic; decrease
What does it mean to say that an asset is "liquid"?
What will be an ideal response?
If a typical consumer is willing to pay $3,000 for a plum and $1,000 for a lemon, and there is a 50% chance of getting a lemon, the typical consumer is willing to pay $2,000 for a used car.
Answer the following statement true (T) or false (F)