Wheat is sold in world markets, usually priced in terms of bushels. In the market for wheat, the price elasticity of demand for wheat would be expressed as
A) the number of bushels of wheat sold.
B) the number of whatever currency is used in purchasing the wheat.
C) the number of dollars spent on wheat.
D) a unitless number.
D
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Austerity advocates argue that stimulus measures paid for with borrowed money:
A. are the best way to speed up an economic recovery. B. will lead to a reduction in the government budget deficit. C. will lead to substantial inflation and sharply higher interest rates. D. will generate substantial tax revenue for the government.
Why would a profit maximizing monopolist in a contestable market set its price at a level below that which maximizes short run profits?
What will be an ideal response?
To maximize utility, why does a consumer consume the combination of goods that equates marginal utility per dollar on the different goods rather than just equating the marginal utility of the different goods?
What will be an ideal response?
The marginal cost curve shows the per-unit cost associated with various levels of output.
Answer the following statement true (T) or false (F)