Which of the following is likely to have the highest price elasticity of demand?
A. Shoes
B. Nike running shoes
C. Running shoes
D. The price elasticity of demand will be the same for all of the answers listed.
Answer: B
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The figure above shows the demand for fruit snacks. Which movement reflects an increase in the price of a complement for fruit snacks?
A) from point a to point e B) from point a to point b C) from point a to point c D) from point a to point d
Which of the following does NOT cause a shift in demand?
A) change in income B) change in tastes C) change in the price of the good D) change in the price of a related good
The accepted definition of poverty may ______ the number of impoverished persons because it ignores ______.
a. underestimate; income taxes b. underestimate; inflation c. overestimate; noncash benefits d. overestimate; private charities
Which type of tariff is used to offset subsidies on exports entering the United States?
a. antidumping duties b. countervailing duties c. export duties d. safeguard duties levied under the escape clause