Which of the following would most likely exhibit the highest price elasticity of demand?
A) gasoline
B) Colgate toothpaste
C) motor oil
D) salt
Answer: B
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Refer to the graph shown. If this perfectly competitive firm is producing 120 units of output, the market price is equal to:
A. 2.50. B. $0.40. C. $48. D. impossible to determine with the information given.
Consider the statement: "When the British government tripled university fees for foreign students in Great Britain, about one-half of them left to study in other countries." The implied price elasticity of demand by foreigners for a British education is (in absolute value)
A. less than 1. B. equal to 1. C. greater than 1.5. D. between 1.0 and 1.5.
For which of the following would the absolute price elasticity of demand be greatest?
A. salt B. Dr. Pepper cola C. tickets to the Super Bowl D. gasoline
One reason to require medical practitioners to be licensed is that
A. medical care involves substantial externalities. B. medical care is a public good. C. medical care is so expensive. D. medical care consumers lack perfect information.