Use an Ace bandage and a rubber tie-down to make an analogy for explaining the price elasticity of demand
Please provide the best answer for the statement.
The Ace bandage has a high amount of potential stretch, so it would be relatively elastic or responsive to a movement. A rubber tie-down has only a limited amount of stretch, so it would be relatively inelastic or unresponsive to the same movement.
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Marginal cost for a firm can be derived from its demand curve.
Answer the following statement true (T) or false (F)
Your friend Dimitre tells you that he thinks that his favorite basketball team has a 70% chance of winning the next game. This is an example of a(n)
A) objective probability. B) subjective probability. C) risk-averse statement. D) Friedman-Savage preference.
A tax where the percentage of income paid in taxes is the same regardless of the size of the income is a:
a. proportional tax. b. regressive tax. c. progressive tax. d. mix of a and b.
Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Mr. Lingle?s budget constraint is AC. Point A is
A. not in Mr. Lingle's opportunity set but is on his budget constraint. B. an available option and Mr. Lingle exactly spends all of his income. C. an available option and Mr. Lingle does not spend all of his income. D. not available because it represents a combination of gardenburgers and beer that Mr. Lingle cannot purchase with his current income.