If we ignore the negative or positive sign, the midpoint method of calculating a percentage change in price between two points on a demand curve results in
A) a smaller percentage change if the price rises than if it falls.
B) the same percentage, regardless of whether the price increases or decreases.
C) the price elasticity of demand.
D) the price elasticity of supply.
E) a higher percentage change if the price rises than if it falls.
B
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Every transaction concerning the exportation of goods from the United States constitutes a
A) supply of foreign currency with no effect on the market for the dollar. B) demand for dollars with no effect on markets for foreign currencies. C) supply of foreign currencies and a demand for dollars. D) demand for foreign currencies and a supply of dollars.
The practice of tying is illegal on the grounds that
a. it allows firms to expand their market power. b. it allows firms to form collusive arrangements. c. it prevents firms from forming collusive agreements. d. the Sherman Act explicitly prohibited such agreements.
Microeconomics is concerned with studying which of the following?
A) the determinants of national unemployment B) the effects of monetary policy C) the study of a nation's workforce D) none of the above
Which of the following statements is NOT true about exchanges in the market system?
A. Exchanges occur only in situations of barter where the market price is irrelevant. B. In voluntary exchange both parties are better off because of the exchange. C. Prices indicate what is relatively abundant and what is relatively scarce. D. Transaction costs in exchanges include the cost of enforcing a contract as well as the costs of information.