Consider the above parallel demand curves. Which curve is relatively more elastic at P1?
A. AA
B. BB
C. Cannot be determined
D. Both have the same slope; therefore, both have the same elasticity.
Answer: B
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When a man with a lawnmower in his trunk stops at Bill's house and offers to mow Bill's yard, economists assume the man
A) expects to be made better off by mowing Bill's yard for a fee. B) is desperate. C) is being exploited. D) both A and B.
The above figure shows a firm in monopolistic competition. What price will the firm charge?
A) $12 B) $24 C) $36 D) None of the above answers is correct.
If the coupon payment on a bond is $350 and the coupon rate is 7%, then what is the face value of the bond?
A. $5,000 B. $374.50 C. $24.50 D. $528.57 E. There is not enough information provided to answer this question.
If a firm pays its workers $10 per hour, the marginal product of labor is 5 units per hour, and the price of the firm's product is $15 per unit, what is the price elasticity of demand facing the firm?
A) -1.15 B) -2.15 C) -1.0 D) -3.56