If the demand function for orange juice is expressed as Q = 2000 - 500p, where Q is quantity in gallons and p is price per gallon measured in dollars, then the demand for orange juice has a unitary elasticity when price equals
A) $0.
B) $1.
C) $2.
D) $4.
C
You might also like to view...
According to the quantity theory of money, a 25 percent change in M, the quantity of money, leads to a 25 percent change in
A) V, the velocity of circulation. B) P, the price level. C) Y, real GDP. D) R, the interest rate.
Which of the following will NOT increase a worker's human capital?
A) more work experience B) more training C) more schooling D) a higher wage rate
Since the 1950s,
A) U.S. business cycle fluctuations have becomes more volatile. B) U.S. business cycle fluctuations have not changed. C) U.S. business cycle fluctuations have become milder. D) the United States has not experienced a business cycle.
Assume the United States is currently running a current account deficit. The most effective way of eliminating this current account deficit would be to temporarily ________ government purchases and ________ the domestic money supply
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease