If the demand for cigarettes is highly inelastic, this indicates that:
A. higher cigarette prices will increase the demand for cigarettes.
B. the price elasticity coefficient of cigarettes exceeds 1.
C. the price elasticity coefficient of cigarettes equals 1.
D. the quantity of cigarettes purchased by consumers is not very responsive to a change in the price of cigarettes.
Answer: D
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If the demand for British pounds decreases,
a. the equilibrium price of the pound will increase b. the equilibrium price of the pound will decrease c. the equilibrium price of the pound will not change d. the equilibrium price of the pound will change, but we need additional information to predict the direction of the change e. no one can predict what will happen
Daryn is raking leaves to earn money for his university's economics club. In the first hour, he rakes 8 bags of leaves. In the second hour, he rakes 6 bags of leaves. If he earns $8 per hour, the value of the marginal product of the second hour of labor is $16
a. True b. False Indicate whether the statement is true or false
All factors of production usually experience:
A. diminishing total productivity. B. diminishing marginal productivity. C. decreasing average variable cost. D. decreasing average fixed costs.
Which of the following actions gave Ralph an indirect ownership share in a corporation?
a. He holds stock in a technology firm. b. He bought products from a large department store. c. He invested for retirement in a mutual fund. d. He bought gift certificates from a restaurant chain.