As the price of samosas (a triangular pastry in India) was raised from 2 to 3 rupees (Indian currency), their quantity demanded fell from 15,000 to 12,000. Rounding to the nearest tenth, the elasticity of demand of samosas is:
A. 1.8.
B. 0.6.
C. 4.
D. impossible to determine because we don't know the exchange rate of the rupee.
Answer: B
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Which set of characteristics below best describes the basic features of monopolistic competition?
A. easy entry, few firms, and standardized products B. easy entry, many firms, and standardized products C. easy entry, many firms, and differentiated products D. barriers to entry, few firms, and differentiated products
A risky borrower can pay a lower interest rate if:
a. she invests the amount in a profitable business. b. she can assure the lender of a low inflation rate. c. she makes a promise to repay within a short interval. d. she can arrange for a collateral.
A shift from S1 to S2 causes equilibrium price to __________ and quantity to __________.
A. rise; rise
B. fall; fall
C. rise; fall
D. fall; rise
Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.
Figure 6.5Refer to Figure 6.5. Molly's budget constraint is CD. Molly's income is $75, the price of a DVD is $3 and the price of a CD is $5. At point D, she is buying ________ DVDs and ________ CDs.
A. 0; 15 B. 50; 30 C. 25; 15 D. 25; 0