For which of the following goods would the price elasticity of demand ordinarily be greatest?
A) Gasoline
B) Mobil regular gasoline
C) Petroleum products
D) Transportation services
E) Unleaded gasoline
B
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Along a straight-line, slanted demand curve,
a. the price elasticity is constant. b. the price elasticity varies along the line. c. the price elasticity is the same as slope. d. the price elasticity cannot be measured.
Barriers to entry reduce the likelihood that price-setter firms will see their positive economic profits competed away over time
Indicate whether the statement is true or false
The figure below shows the demand for items from a warehouse club. All of the people who shop at the warehouse club have the same demand. If the managers set a single price, so that all customers pay the same price for every item they buy, the firm makes an economic profit of ________ and if the managers use two-part pricing, the firm makes an economic profit of ________.
A) $40 million; $80 million
B) $60 million; $80 million
C) $40 million; $60 million
D) $0; $80 million
Most economists agree that the government should use incomes policies to control inflation during peacetime
a. True b. False Indicate whether the statement is true or false