The price elasticity of demand
a. is determined by the Federal Reserve Bank at a monthly meeting.
b. only works well in competitive markets.
c. intersects with the price elasticity of supply to determine the market equilibrium.
d. is equal to the slope of the demand curve.
e. varies from one point to another on a typical demand curve.
e. varies from one point to another on a typical demand curve.
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The difference between an absolute price and a relative price is that:
a. absolute prices are based on costs of production, relative prices are based on market exchange. b. absolute prices are in terms of currency, relative prices are in terms of another good. c. absolute prices are in terms of another good, relative prices are in terms of currency. d. absolute prices never change, relative prices change with inflation.
Average tariff rates are highest for
A) high-income countries. B) middle-income countries. C) low-income countries. D) industrialized countries.
A consumer is said to be indifferent between two consumption bundles
A) when the consumer doesn't care about his or her consumption bundle. B) when the two bundles provide equal amounts of utility. C) when the consumer chooses the bundles equally often. D) when the consumer is indecisive.
Which of the following tend to be at a disadvantage in periods of rising prices?
a. debtors. b. people with fixed incomes. c. salespeople whose commissions are very susceptible to price changes. d. All of these.