Suppose the equilibrium price in the market is $24 and the price elasticity of demand for the linear demand function at the market equilibrium is ?1.5. Then we know that:
A. marginal revenue is $8.
B. demand is unit elastic.
C. demand is inelastic.
D. marginal revenue is $20.
Answer: A
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Assume that a house is rented by four students. When it comes to keeping the house clean, each of the four roommates has an incentive to leave cleaning to the others. As a result, the house is never clean
Which of the following is the best solution to this problem of free riding? A) Assign one roommate the responsibility to keep a watch over the other students B) Require every roommate to contribute to a cleaning service C) Ask every roommate to clean the house if they dirty it D) Require each roommate to pay more toward the house rent and groceries
Capital payments usually represent ________ of income payments
A) two-third B) three-fourths C) one-fourth D) one-third
Entrepreneurship results in an equal distribution of wealth and income
Indicate whether the statement is true or false
We take one dollar from a millionaire and give it to a pauper. Assuming a diminishing marginal utility of money?
a. total utility in the economy must rise. b. total utility in the economy must fall. c. total utility in the economy must remain the same. d. we cannot say whether or not total utility changes.