Use the figure below to answer the following question:
In the graph above, what is the price elasticity of supply (using the midpoint formula) between points A and B?
A. 3
B. 1/3
C. 2
D. 1
Answer: D
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Suppose Barry is maximizing his utility from consuming used paperback novels and audio books. The price of a used novel = $4 and the price of an audio book = $8
If the marginal utility of the last novel was 32 units of utility (utils) what was the marginal utility of the last audio book purchased? A) 2 utils B) 12 utils C) 16 utils D) 64 utils
Members of the top quintile of income earners in every country today:
A. earn disproportionately more than those in the bottom quintile. B. earn disproportionately less than those in the middle quintile. C. earn disproportionately less than they did 100 years ago. D. All of these are true.
Mutual interdependence means that each firm in an oligopoly:
A. Faces a perfectly inelastic demand for its product B. Considers the reactions of its rivals when it determines its pricing policy C. Depends on the other firms for its inputs D. Depends on the other firms for its markets
What are the three categories of correlation? Illustrate with real life examples
What will be an ideal response?