Refer to Scenario 3 . Compare and discuss the two elasticity estimates computed above
Without doing any more calculations what would you expect to happen to the value of the elasticity estimates as price continues to fall? Assume a linear demand curve.
Elasticity is greater for the higher prices. As price continues to fall we would expect that the elasticity would fall as well.
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Assume that the price for swimming pool maintenance services has risen and sales of these services have fallen. One can conclude that
A) the demand for swimming pool maintenance services has increased. B) swimming pool maintenance services are becoming more technologically advanced. C) the law of supply has been violated. D) the supply of swimming pool maintenance services has decreased.
The equilibrium wage rate is determined by
A. Market labor supply and market labor demand. B. Labor unions. C. Firms but not individuals. D. Individuals but not firms.
The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Karl.
The slope of the PPC between points Y and Z is determined by ________ opportunity cost.
A. Janna and Drew's B. Drew's C. Janna's D. Kari's
Which of the following countries has the highest export ratio?
A. The United Arab Emirates. B. Japan. C. China. D. The United States.