The income elasticity of demand is the percentage change in ________ divided by the percentage change in ________
A) the price; income
B) the quantity demanded; income
C) income; the quantity demanded
D) income; the price
B
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In the circular flow model, the value of total income for an economy ________ the value of total production
A) equals B) is greater than C) may be greater than or less than D) is less than
We have read that the uninsured and the insured behave differently in regard to medical services. Suppose that the insured have a demand curve that can be written as Q = 100 - P, where Q is the quantity of medical services and P is the price. Suppose further that the uninsured have a demand curve that can be written as Q = 100 - 2P.
(a) At a price of $10 of medical services, how much will each demand? (b) At a quantity of 50 units, how much will the price be for the insured and uninsured?
A movement of the price index from 108 to 112 represents an improvement in the cost of living
a. True b. False Indicate whether the statement is true or false
A firm should hire an additional worker as long as the wage rate is
A. Greater than the MRP. B. Less than the MPP. C. Less than or equal to the MRP. D. Greater than the MPP.