Suppose that quantity demand falls by 30% as a result of a 5% increase in price. The price elasticity of demand for this good is
a. inelastic and equal to 6.
b. elastic and equal to 6.
c. inelastic and equal to 0.17.
d. elastic and equal to 0.17.
b
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The Loma Linda City Council made it official in June 2008, passing the most restrictive smoking ordinance yet in the Inland area. Dr. Linda Ferry, who counsels veterans on quitting smoking at Jerry L
Pettis Memorial VA Medical Center, said that the smoking ordinance would protect children from exposure to secondhand smoke and discourage teenagers and adults from taking up smoking. What is TRUE about this situation? A) Marginal external costs are negative. B) Marginal external benefits are positive. C) Marginal external costs are positive. D) Marginal external benefits are negative.
Which of the following is NOT an objective of economic regulation?
A) to regulate the prices enterprises are allowed to charge B) to fix prices so that they are never allowed to rise C) to keep rates of return in an industry at a competitive level D) to prevent monopoly profits
If the quantity of money supplied exceeds the quantity of money demanded, at a point in time: a. the price level in the economy will fall
b. the equilibrium interest rate will fall. c. the equilibrium interest rate will fall. d. the money demand curve will shift to the right. e. the money demand curve will shift to the left.
Assume the graph shown reflects demand in the automobile market. Which arrow best captures the impact of increased consumer income on the automobile market?
A. A B. B C. C D. D