If the elasticity of demand for peaches is 1.76 and the elasticity of demand for apples is 1.59, then consumers are
A) more sensitive to a change in the price of peaches than they are to a change in the price of apples.
B) less sensitive to a change in the price of peaches than they are to a change in the price of apples.
C) more sensitive to a change in the quantity of peaches than they are to a change in the quantity of apples.
D) less sensitive to a change in the quantity of peaches than they are to a change in the quantity of apples.
A
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A country cannot develop without a large natural resource base
a. True b. False Indicate whether the statement is true or false
The text discusses the projected increases in the claims on the economy by entitlement programs between the mid 1990s and 2035 . It argues that
a. the projected growth of Medicare claims far outstrips that of Social Security b. as a percentage of GDP, both Medicare costs and Social Security costs will fall c. age and health-care demands are related with the majority of claimants being the young d. the rate of growth of Social Security payments will be higher than the rates for either Medicare and Medicaid e. Social Security and Medicare costs will remain at about the same percent of GDP
Necessities such as food and clothing tend to have
a. high price elasticities of demand and high income elasticities of demand. b. high price elasticities of demand and low income elasticities of demand. c. low price elasticities of demand and high income elasticities of demand. d. low price elasticities of demand and low income elasticities of demand.
Suppose you drive a car that gets good gas mileage, and you notice that more and more people are driving gas-guzzling cars. Their increased demand for gas:
A. is likely to cause the price you pay for gas to increase. B. does not change the price you pay, but it reduces the quantity of gas supplied. C. is likely to cause the price you pay for gas to decrease. D. does not affect you.