If 20% increase in the price of a good leads to a 60% decrease in the quantity demanded, then what is the price elasticity of demand?
A. 1/3.
B. 30.
C. 3.
D. 1/6.
Answer: C
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If the dollar depreciates against the yen, U.S. goods sold in ________ would become less expensive and Japanese goods sold in ________ would become more expensive
A) the United States; the United States B) Japan; Japan C) the United States; Japan D) Japan; the United States
In the United States for people age 16 to 24, the typical woman earns about ________ of what the typical man earns
A) 90% B) 80% C) 70% D) 50%
The small but non-trivial costs that a firms incurs when changes product prices are also called
A) menu costs. B) price inertia. C) sticky costs. D) sunk costs.
If external costs are included and added to a firm's private costs, then
A) the demand curve will shift to the right. B) the demand curve will shift to the left. C) the supply curve will shift to the right. D) the supply curve will shift to the left.