As DVDs become popular substitutes for video cassettes, demand for video cassettes is likely to
a. become less price elastic
b. become more price elastic
c. increase
d. stay the same
e. become unit elastic
B
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Suppose that a price index in Latvia was 120 in 2015 and 150 in 2016. The inflation rate between those two years was approximately
A) 8 percent. B) 12.5 percent. C) 25 percent. D) 30 percent.
As more people started building houses in your community, more street lights were installed in your locality making it safer and easier to drive through. This is an example of a(n) ________
A) pecuniary externality B) network externality C) moral hazard D) adverse selection
The rules of accounting generally require that ________ be included in a firm's financial records
A) only explicit costs B) both explicit costs and implicit costs C) only implicit costs D) neither explicit costs nor implicit costs
A firm under any market structure maximizes profits at a point where:
a. marginal revenue product is greater than marginal factor cost. b. marginal revenue product is equal to marginal factor cost. c. marginal revenue product is equal to zero. d. marginal factor cost is equal to zero. e. marginal revenue product is less than marginal factor cost.