If the price of orange juice rises 10%, and as a result the quantity demanded falls by 10%, then one can conclude that the demand for orange juice
A) is perfectly elastic.
B) is inelastic.
C) has a unitary elasticity.
D) has a constant elasticity.
C
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Explain why choices respond to incentives and think of three incentives to which you have responded today
What will be an ideal response?
A tax elasticity of supply equal to zero indicates that
A. Employers will not hire any workers if tax rates increase. B. Workers will not cut back on the number of hours worked if tax rates increase. C. Employers will hire more workers if tax rates increase. D. Workers will not work at all if tax rates increase.
Which of the following would be the least likely result of a binding price ceiling imposed on the market for rental cars?
a. an accumulation of dirt in the interior of rental cars b. poor engine maintenance in rental cars c. free gasoline given to people as an incentive to a rent a car d. slow replacement of old rental cars with newer ones
Since the 1940's U.S. union membership has
a. fallen. This decline should have reduced structural unemployment. b. fallen. This decline should not have reduced structural unemployment. c. risen. This increase should have raised structural unemployment. d. risen. This increase should not have raised structural unemployment.