A price elasticity of demand of 0.67 implies
a. Demand is inelastic
b. Demand is elastic
c. Demand is unitary elastic
d. Demand is perfectly elastic
a
You might also like to view...
The balance of payments is
A. the equilibrium result when two countries achieve purchasing power parity. B. an account that records changes in exchange rates between two countries. C. an account that records all economic transactions between a country and all other countries, usually within a year. D. all of the above. E. none of the above.
Answer the following statements true (T) or false (F)
1. An increase in the labor supply due to immigration would shift the production possibilities curve to the left. 2. A nation's consumption is strictly limited by its production possibilities, even with international trade. 3. If two sets of data are inversely related, they will appear on a graph as an upward-sloping line. 4. If A is the dependent variable and B is the independent variable, then a change in A results in a change in B.
Which of the following leads to a movement along the supply curve for shredded wheat but does not shift the supply curve for shredded wheat?
A) a fall in the price of shredded wheat B) an increase in the cost of machinery used to shred wheat C) perfect weather conditions that resulted in a large wheat crop D) a decrease in the number of shredded wheat producers
In the above figure, as output increases from 0 units to 10 units to 20 units to 30 units, the deadweight loss
A) falls. B) falls at first, then rises. C) rises. D) rises at first, then falls.