If the price elasticity of demand (Ep) equals one in the short run, then, other things being equal, in the long run Ep will be
A. less than one.
B. one.
C. greater than one.
D. indeterminate without more information.
Answer: C
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A) decreases as consumption of the commodity increases. B) increases as consumption of the commodity increases. C) is always less than the market price of the commodity. D) is always greater than the market price of the commodity.
Which of the following is an example of a negative externality? a. A Japanese company exports cars to the U.S., which causes American workers to lose their jobs
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If the demand for cucumbers falls when the price of tomatoes rises, then we know that tomatoes and cucumbers are:
A. substitutes B. normal goods C. inferior goods D. complements
Derive the budget line equation for the case where good 1 is a composite good. What is the vertical intercept and what is the slope?
What will be an ideal response?