If the price of corn chips increases from $2.00 per bag to $3.00 per bag and the quantity demanded goes down from 100 million bags per week to 50 million bags per week, the absolute value of price elasticity of demand in that price range is
A) 0.50.
B) 1.67.
C) 0.93.
D) 2.33.
B
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The efficient markets theory of stock prices, says that new information
a. is quickly and completely incorporated into stock prices b. is incorporated into stock prices only when discovered by fundamental analysis c. causes stock prices to increase d. has little impact on stock prices e. is incorporated into stock prices with a time lag of a few days
A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only. B. aggregate demand curve only. C. aggregate demand curve, and the short-run aggregate supply curve would shift in response. D. short-run aggregate supply curve and the long-run aggregate supply curve.
For which product is the income elasticity of demand most likely to be negative?
A. Bread B. Used clothing C. Computer software D. Golf balls
Refer to the information provided in Figure 7.6 below to answer the question(s) that follow. 
Figure 7.6Refer to Figure 7.6. If this shoe manufacturer increases labor from 20 to 25 (moving along the given isoquant with Q=50), the marginal product of the 25th worker
A. is 7.5, as capital can be reduced by 7.5 units when the 25th worker is hired. B. is zero, as the total number of shoes produced remains at 50. C. cannot be determined because output remains constant. D. cannot be determined because both capital and labor have been increased.