The price elasticity of demand would most likely be the lowest for
A) a house.
B) salt.
C) a Toyota sport utility vehicle.
D) Shell gasoline.
Answer: B
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If a monopolist lowers its price from $45 to $42 in order to increase its sales volume, marginal revenue
a. equals $45. b. equals $42. c. is less than $42. d. is between $45 and $42.
When the firms in a perfectly competitive market are incurring economic losses, some of the firms will exit the market, causing the supply curve to shift left and market price to rise until losses incurred by the remaining firms are eliminated
Indicate whether the statement is true or false
Suppose the economy is producing below the natural rate of output and the government is suffering from large budget deficits. To deal with the deficit problem, suppose the government takes a policy action to reduce the size of the deficits
This policy action will cause ________ in the unemployment rate in the short run and ________ in inflation in the short run, everything else held constant. A) an increase; an increase B) a decrease; a decrease C) a decrease; an increase D) an increase; a decrease
Winner-take-all markets may be applied to the
A. winnings of those who hit the lottery. B. winnings of gamblers. C. the luck of those who inherit billions of dollars. D. the compensation of CEOs of large corporations.