Jonah lives in a small town where there is only one Mexican restaurant. Which of the following is likely to be true about the price elasticity of demand for meals at the Mexican restaurant?
A) Demand is likely to be perfectly elastic. B) Demand is likely to be relatively elastic.
C) Demand is likely to be relatively inelastic. D) Demand is likely to be perfectly inelastic.
C
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Equilibrium income equals planned autonomous spending
A) times the marginal propensity to consume. B) divided by the marginal propensity to consume. C) times the marginal propensity to save. D) divided by the marginal propensity to save.
An example of a poverty trap is
a. extended time periods without war b. a lack of mineral wealth c. a dysfunctional or corrupt government d. laws and regulations to help detect fiscal fraud e. None of the answers is correct
A technological breakthroughs in the production of computers creates a __________ and causes the price of computers to __________.
a. leftward shift of supply, rise b. rightward shift of supply, fall c. rightward shift of demand, rise Incorrect. Please review Top Ten Concept # 3. d. rightward shift of supply, rise e. leftward shift of demand, rise
Refer to Scenario 1-2. Using marginal analysis terminology, what is another economic term for the incremental revenue received from the sale of the last 500 cigars?
A) sales revenue B) gross earnings C) marginal revenue D) gross profit