If the price of gasoline rose from $2.85 to $2.95 per gallon, your expenditure on gasoline would increase if your price elasticity of demand for gasoline equals
A) 1.25.
B) 1.00.
C) 0.75.
D) Total revenue would increase at all of the above elasticities.
C
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An upward shift in the Fed's policy reaction function is a ________ of monetary policy, and the aggregate demand curve ________.
A. tightening; shifts left B. easing; shifts left C. tightening; shifts right D. easing; shifts right
Suppose the marginal product of labor (MPL) is greater than the real wage. If the real wage remains constant, then we should expect ________
A) an increase in employment and decrease in the MPL B) an increase in the supply of labor and decrease in the MPL C) an increase in leisure and no change in the MPL D) an increase in the supply of labor and no change in the MPL
At the optimal consumption bundle, the marginal rate of substitution of leisure for consumption is equal to
A) the real wage and the budget line is tangent to an indifference curve. B) minus the real wage and the budget line is tangent to the indifference curve. C) the real wage and the budget line intersects the indifference curve. D) minus the real wage and the budget line intersects the indifference curve.
In the personal computer market, some large manufacturers are able to buy computer components (e.g., disk drives, flat-screen monitors, and memory chips) and software at lower prices than smaller firms in the market
This outcome indicates that the large firms enjoy some degree of ________ in this market. A) monopoly power B) oligopoly power C) oligopsony power D) monopsony power