For most consumer goods, the price elasticity of demand is
A) negative only when price decreases.
B) negative regardless of the direction of the price change.
C) positive only when price decreases.
D) positive regardless of the direction of the price change.
B
You might also like to view...
Suppose there are 10 apples and 10 oranges in the economy. Joe is currently consuming 4 apples and 5 oranges, and Jane is consuming 6 apples and 5 oranges
At this allocation, Joe's marginal utility of apples is 3, and his marginal utility of oranges is 5. Jane's marginal utility of apples is 6, and her marginal utility of oranges is 10. If the current price of apples is $4 and the current price of oranges is $5, then there is an: A) excess demand for apples and an excess supply of oranges. B) an excess demand for oranges and an excess supply of apples. C) equilibrium in the market with no excess supply or demand for either good. D) an excess supply of apples and oranges.
Which of the following addresses agency costs?
a. advertising for employee positions in as many outlets as possible b. hiring only from job fairs c. instituting longer work days d. replacing closed offices with cubical office spaces
A monopolist will earn economic profits as long as his price exceeds
a. marginal revenue. b. average fixed cost. c. average variable cost. d. average total cost.
Cutting the poor off welfare is
A. the liberal position. B. the conservative position. C. both the liberal and the conservative position. D. neither the liberal nor the conservative position.