Measuring the price of gasoline in dollars per quart, an economist calculates the price elasticity of demand to be 1. What would the price elasticity of demand be if the economist had chosen to measure the price in dollars per gallon?
A. .5
B. .25
C. 4
D. 1
Answer: D
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Assume a small nation has the following statistics: its consumption expenditure is $15 million, investment is $2 million, government expenditure on goods and services is $1 million, exports of goods and services to foreigners is $1 million, and
imports of goods and services from foreigners is $1.5 million. Calculate this nation's GDP.
If pilots and flight attendants agree to wage and benefit reductions in the wake of the financial difficulties in the airline industry, what impact would this have on the supply and demand in the market for airline service, assuming no other changes
take place in this market?
Monetarists have argued that since velocity __________, this shows that shifts to the investment demand function must __________
A) is rather stable; cause the private economy to be unstable B) is rather stable; be offset by interest rate changes C) moves counter-cyclically; cause the private economy to be unstable D) moves counter-cyclically; be offset by interest rate changes
For a perfect competitor, price equals
A. marginal revenue only. B. neither marginal revenue nor average revenue. C. both average revenue and marginal revenue. D. average revenue only.