If elasticity of demand is 1.0 and price is lowered from $100 to $99, by what percentage will quantity demanded rise?
What will be an ideal response?
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Explain the difference between GDP and GNP
What will be an ideal response?
An auction for mineral rights on an unexploited oilfield can be characterized as
a. A common value auction b. A private value auction c. Highest value d. None of the above
If pretzels are a normal good, the income effect of a price change means that
a. as income increases, the quantity demanded increases along the demand curve for pretzels b. as income increases, the demand curve for pretzels shifts rightward c. as income increases, the demand curve for pretzels shifts leftward d. as the price of pretzels increases, the real income of individuals who demand pretzels decreases, so the quantity demanded of pretzels decreases e. as the price of pretzels increases, income increases
When the inflation rate rises, the purchasing power of nominal income:
a. remains unchanged. b. decreases. c. increases. d. changes by the inflation rate minus one.