Two economists from Ohio University estimated that the demand curve for kerosene in Indonesia was such that a 10 percent increase in the price reduced the quantity demanded by 2.2 percent and that a 10 percent increase in the price of electricity increased the demand for kerosene by 1.6 percent. This indicates that (i) the demand for kerosene is price inelastic and (ii) kerosene and electricity
are substitutes. Which of these two statements is correct?
a. i and ii
b. i not ii
c. ii not i
d. neither i nor ii
a
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Especially in terms of retail properties, which of the following attributes is considered the most likely to result in drastic value differences between otherwise similar properties?
A. Structural attributes B. Financing attributes C. Location attributes D. Land attributes
Which of the following would be most likely to contribute to the breakdown of a cartel in a natural resource (e.g., bauxite) market?
a. high prices b. low price elasticity of demand c. high compatibility of member interests d. unequal member ownership of the natural resource
The primary reason that supply variability can have a significant impact on price is that
A. supply for agricultural products tends to be inelastic. B. demand for agricultural products tends to be elastic. C. demand for agricultural products tends to be inelastic. D. supply for agricultural products tends to be elastic.
Figure 15.2 depicts a one-mile stretch of beach with 100 swimmers distributed evenly along the beach. There are two ice cream vendors - 1 and 2 - on the beach selling an identical product. If swimmers prefer to buy ice cream from a nearer vendor, what is the median location?
A. A B. B C. C D. D