Cary increases the price of her cakes from $8 to $10 per cake, but her cash receipts decrease by 2 percent. The price elasticity of demand (in the $8 to $10 range) is
a. elastic.
b. inelastic.
c. 0.02.
d. 0.25.
A
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The income effect of a higher wage rate results in a
I. higher income as people work more. II. person choosing to decrease work hours as income increases. III. backward-bending labor supply curve. A) I and II B) II and III C) I and III D) II only
Assuming perfect capital mobility and flexible exchange rates, then
a. monetary policy is ineffective while fiscal policy is highly effective. b. fiscal policy is completely ineffective while monetary policy is highly effective. c. both monetary policy and fiscal policy are effective. d. monetary policy is less effective than fiscal policy.
Empirical evidence from electric-power-producing firms suggests that
A) all electric-power-producing firms are natural monopolies. B) no electric-power-producing firms are natural monopolies. C) the largest electric-power-producing firms are natural monopolies. D) the smallest electric-power-producing firms are natural monopolies.
Use the above table. The MFC of the 4th worker is
A) $5. B) $6.25. C) $25. D) $40.