Refer to Scenario 1-1. Had the firm not produced and sold the last 400 t-shirts, would its profit be higher or lower, and if so by how much?
A) Its profit would be $800 higher. B) Its profit would be $800 lower.
C) Its profit would be $4,800 higher. D) Its profit would be $4,000 lower.
A
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How are the following events likely to affect the market supply of rice in an economy?
a) A fall in the wage rate of farm labor b) An increase in the productivity of farm capital due to better technology c) An increase in the use of agricultural land for non-agricultural purposes
What is the effect of an increase in unemployment benefits on the unemployment rate?
What will be an ideal response?
The value of the absolute price elasticity of demand for good X is 3. The absolute price elasticity for good Y is 2. Which good's quantity demanded is less responsive to a change in price?
A) Good X B) Good Y C) They are equally responsive. D) Not enough information is given.
Peanut butter and jelly are:
a. substitutes and have a positive cross-price elasticity of demand. b. complements and have a positive cross-price elasticity of demand. c. substitutes and have a positive cross-price elasticity of demand. d. complements and have a negative cross-price elasticity of demand. e. inferior goods when the income elasticity of demand is positive.