If the elasticity measure equals 1.0, then the demand is
A) elastic.
B) unit elastic.
C) inelastic.
D) infinitely elastic.
B
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People often complain about price gouging after a disaster such as a hurricane. Suppose the government successfully prevented price increases due to the disaster. We would expect
A) reconstruction to take longer because the quantity supplied of new materials would increase more slowly. B) reconstruction to take less time because the demand for materials would increase faster. C) reconstruction never to occur. D) reconstruction to take less time because the government could rebuild more quickly when people are not in the way.
In the United States, the purchasing power of money is determined by:
a. the underlying precious metals that back each unit of currency. b. the value of U.S. treasury bonds that back each unit of currency. c. its acceptability. d. Congress, which controls the money supply.
Maurice faces a progressive federal income tax structure that has the following marginal tax rates: 0 percent on the first $10,000 . 10 percent on the next $10,000 . 15 percent on the next $10,000 . 25 percent on the next $10,000 . and 50 percent on all additional income. In addition, he must pay 5 percent of his income in state income tax and 15.3 percent of his labor income in federal payroll taxes. Maurice earns $60,000 per year in salary and another $10,000 per year in non-labor income. What is his average tax rate?
a. 17.19 percent b. 46.69 percent c. 48.87 percent d. 56.01 percent
Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process:Name of CompanyRevenuesCost of Purchased inputsCitrus Growers Inc.$0.750Florida Jam Company$2.00$.75The Corner Store$2.50$2.00What is the value added of Citrus Growers Inc.?
A. $0.75 B. $0.00 C. $1.75 D. $0.50