If a 10 percent price increase generates a 20 percent decrease in quantity demanded, then demand is
A) elastic.
B) perfectly inelastic.
C) perfectly elastic.
D) inelastic.
E) unit elastic.
A
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Refer to the table above, which gives five points on a nation's PPF. The production of 7 units of X and 28 units of Y is
A) impossible given the available resources. B) possible but leaves some resources less than fully used or misallocated. C) on the production possibilities frontier between points c and d. D) on the production possibilities frontier between points b and c.
A socially-optimal price regulation will NOT work if:
A) marginal cost is less than average total cost. B) marginal cost is less than average fixed cost. C) marginal cost is greater than average total cost. D) marginal cost is greater than average fixed cost.
If a worker can produce 20 units of output which can be sold for $4 per unit, what is the maximum wage that firm should pay to hire this worker?
A) It depends on what the going wage rate is in the labor market. B) $80 minus the firm's profit markup C) $80 D) There is insufficient information to answer the question.
Which of the three product has a unitary elastic demand curve?
a. Cigarettes b. Alcohol c. Sodas d. None of the above