Refer to the following graph to answer the question:
The price elasticity of demand over the price interval $90 to $110 is
A. -2.0
B. -1.0
C. -0.5
D. -1.5
E. -0.4
Answer: A
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The Farm Factory, a booth at the local Farmer's Market, sells fresh eggs for $1.50 per dozen and fresh milk for $2.50 per gallon. What is the opportunity cost of buying a dozen eggs?
A) $1.50 B) $2.50 C) 1 2/3 gallons of milk D) 3/5 of a gallon of milk
What does a budget constraint represent? How do budget constraints explain the trade-offs that consumers face?
What will be an ideal response?
The typical test applied for merger approval under U.S. antitrust law requires that:
A. quantities produced not fall. B. prices not rise. C. aggregate surplus not fall. D. the merger not be horizontal in nature.
What must the value of the average propensity to save (APS) be if the average propensity to consume (APC) is greater than 1? Why?
What will be an ideal response?