When the price of a soft drink from the campus vending machine was $0.60 per can, 100 cans were sold each day. After the price increased to $0.75 per can, sales dropped to 85 cans per day. Over this range, the absolute price elasticity of demand for soft
drinks was approximately equal to
A) 0.15.
B) 0.60.
C) 0.73.
D) 1.67.
Answer: C
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The decision about how much money to hold is an application of the:
A. cost-benefit principle. B. scarcity principle. C. principle of comparative advantage. D. equilibrium principle.
Diminishing returns occurs because
A) consumers don't buy enough of the products produced. B) one of the inputs in the production process is fixed. C) not enough people have jobs. D) two people have not satisfied their self-interests.
If real GDP has increased, which of the following statements is always true?
A) Nominal GDP has increased. B) Output has increased. C) Prices have remained the same. D) Output might have decreased if prices have risen enough.
In addition to generating more output, economic growth can also contribute to:
A. Improved health for workers. B. Increased unemployment for workers. C. Decreased productivity. D. A more equitable distribution of output.