Suppose you learn that in 1900, households spent about 40 percent of their budget on food, and today, they spend about 10 percent of their budget of food. All else equal, this suggests that the price elasticity of demand for food:
A. is probably negative.
B. is probably higher now than it was in 1900.
C. is probably lower now than it was in 1900.
D. has always been very high.
Answer: C
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You operate a small poultry farm in east Texas. You sell most of your output through a regional distributor of poultry products in the area. In this case, you are subject to
a. Low buyer power b. High buyer power c. No buyer power d. All of the above
Firm size alone is not the same as market power, as illustrated by
a. a large automaker raising its prices without concern about competition b. a movie theater in an isolated community facing stiff competition c. wheat farmers selling their commodity product to farm cooperatives d. the only newspaper in a metropolitan area facing competition for advertising sales from TV, radio, and the Internet e. None of the answers is correct
The W = MRP ethic states that individuals are paid according to the value of their opportunity cost
Indicate whether the statement is true or false
The Clayton Act of 1914 allowed a person who successfully sued a company for damages caused by an illegal arrangement to restrain trade to recover __________ damages
Fill in the blank(s) with correct word