Refer to the above table. What is the absolute price elasticity of demand when a price rises from $8 to $8.50?
A) 5.15
B) 1.94
C) 0.515
D) 0.194
B
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Which of the following statements about a circular flow model is false?
A) Producers are buyers in the factor market and sellers in the product market. B) Households are neither buyers nor sellers in the input market. C) Households are buyers in the product market. D) Producers are buyers in the factor market.
For a firm to maximize total profits through price discrimination, it should
a. Charge a high price to consumers with an inelastic demand and low price to consumers with an elastic demand b. Charge a low price to consumers with an inelastic demand and high price to consumers with an elastic demand c. Charge the same price to both sets of consumers d. Charge nothing to both set of consumers-throw a party
Free-riding is linked to an absence of monitoring behavior
Indicate whether the statement is true or false
Which is more effective in blocking imports, a tariff or a quota?
What will be an ideal response?