In December 2014, the average price of gasoline in the United States was $2.50 per gallon and consumers bought 7 percent more gasoline than they had during April 2014, when the average price was $3.60 per gallon
Based on these numbers, what was the price elasticity of demand for gasoline from April 2014 to December 2014?
A) -0.02 B) -0.19 C) -1.01 D) -2.26
B
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Explain: "The law of increasing additional cost is an inevitable phenomenon in economics."
What will be an ideal response?
When airlines were deregulated, airfares declined by 30 percent. Deregulation is an example of political forces:
A. letting the market move toward equilibrium, reducing excess supply. B. making the market move away from equilibrium, creating excess supply. C. letting the market move toward equilibrium, reducing excess demand. D. making the market move away from equilibrium, creating excess demand.
Studying how Joshua allocates his time between school and video games is an example of
A. industrial organization. B. microeconomics. C. macroeconomics. D. descriptive economics.
If the wage rate rises, then in the long run, the firm will replace some of its labor with other factors such as capital, even if it keeps its output level constant. This phenomenon is known as
a. the substitution effect. b. the scale effect. c. the regressive-factor effect. d. the factor-price effect.