Using the table above, what is the elasticity of demand between the prices of $9 and $7?
A) 1/4
B) 1
C) 2
D) 4
E) 6
D
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The primary method that decision makers use to evaluate choices among competing alternatives is called
A) the competitive forces model. B) cost-benefit analysis. C) heads-or-tails analysis. D) absolute advantage.
When the elasticity of demand for a particular good is between zero and -1, _____
a. demand is elastic b. demand is inelastic c. demand is unit-elastic d. the good is an inferior good e. the good is a normal good
The problem of time lags in making policy changes is less acute for monetary policy than it is for fiscal policy
a. True b. False Indicate whether the statement is true or false
If the marginal utility of each good is constant as consumption increases, the indifference curves are
A. horizontal. B. positively sloped. C. straight lines. D. vertical.