Suppose that 300 bottles of soda are demanded at a particular price. If the price of a bottle of soda rises from that price by 6 percent, the number of bottles of soda demanded falls to 275 . Using the midpoint approach to calculate the price elasticity of demand, it follows that the
a. demand for bottles of soda in this price range is perfectly elastic.
b. price increase will increase the total revenue of soda sellers.
c. price elasticity of demand for bottles of soda in this price range is about 0.69.
d. price elasticity of demand for bottles of soda in this price range is about 1.45.
d
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Refer to Figure a. Charlie and Joe both want to ride shotgun with their mother, so they play a game of rock-paper-scissors to determine who gets to sit in the front seat. In the table, -1 represents a loss, 1 a win and 0 a tie, and Joe's payoff is shown in the upper left-hand corner of each cell, while Charlie's appears in the lower right-hand corner. What is Charlie's dominant strategy?
A. Rock
B. Paper
C. Scissors
D. Charlie does not have a dominant strategy.
Which of the following is included in the M2 definition of the money supply?
A. Cash and currency B. Checkable deposits C. Money market deposit accounts D. Money market mutual funds E. All of these responses are correct.
The consumer price index tries to gauge how much incomes must rise to maintain
a. an increasing standard of living. b. a constant standard of living. c. a decreasing standard of living. d. the highest standard of living possible.
Which one of the following statements is correct?
What will be an ideal response?