Suppose that Bill budgets exactly $50 each month for fresh shrimp, regardless of whether shrimp is priced at $10 per pound, or is on sale for $4 per pound. Based on this information, Bill's price elasticity of demand is:
a. 0.
b. Cannot be determined.
c. 1.
d. infinite.
c
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During the early 1930s, the Fed was reluctant to rescue nonsolvent banks out of fear of encouraging:
A) moral hazard B) adverse selection C) bank run D) sovereign debt crisis
The owner of a railroad that carries cargo should ________ supply when she foresees regulations that will ________ the cost of shipping cargo by truck
A) decrease; increase B) decrease; leave unchanged C) increase; increase D) leave unchanged; increase
From the late 1960s to the late 1980s, SAT scores in the United States
a. help explain the productivity increases. b. rose consistently throughout the period. c. declined throughout the period. d. indicated improving workforce quality.
Vertical equity in taxation refers to the idea that people
a. in unequal conditions should be treated differently. b. in equal conditions should pay equal taxes. c. should pay taxes based on the benefits they receive from the government. d. should pay a proportional tax rather than a progressive tax.