Which is larger: The price elasticity of demand for food or the price elasticity of demand for oranges? Why?
What will be an ideal response?
The price elasticity of demand for oranges is larger than the price elasticity of demand for food. The elasticity of demand for oranges is larger because there are many more substitutes for oranges (apples, grapefruit, lemons, and so forth) than there are substitutes for food.
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Of the owners of the following firms, which does not have unlimited liability for the business' debts?
A) Roy Ray's Grocery Store, Roy Ray, proprietor B) the partnership of Reese and Jones, Attorneys-at-Law C) the Huber Corporation D) Wren's Feed and Seed Store, a proprietorship
The substitution effect makes workers want to work less when the wage increases
a. True b. False Indicate whether the statement is true or false
In the open-economy macroeconomic model, if investment demand decreases, then
a. the supply of dollars in the market for foreign-currency exchange shifts left. b. the supply of dollars in the market for foreign-currency exchange shifts right. c. the demand for dollars in the market for foreign-currency exchange shifts left. d. the demand for dollars in the market for foreign-currency exchange shifts right.
Why would a firm choose a lesser known celebrity in its advertising when more famous celebrities are available?
What will be an ideal response?