Price Per UnitQuantity Demanded Per Unit of Time$2012$1817$1620$1424$1230$1036$840$644$448Refer to the above data. Over which price range is the price elasticity of demand inelastic?
A. $12-$10
B. $18-$16
C. $20-$18
D. $10-$8
Answer: D
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Mr. Calhoun owned land on which cotton could be grown, but which he had been unable to rent for years. Suddenly he was getting offers from cotton farmers to lease his land. Which of the following best explains this change in circumstances? a. The price of cotton decreased
b. The price of cotton increased. c. The productivity of the land increased. d. Property taxes on the land increased.
Suppose Bianca buys a used a textbook from Sebastian for $55. If Bianca's surplus from this transaction was $10, we can infer that:
A. Bianca's reservation price was $45. B. Sebastian's reservation price was $45. C. Bianca's reservation price was $60, and Sebastian's reservation price was $50. D. Bianca's reservation price was $65.
Which of the following statements is NOT an assumption underlying the production possibilities curve?
A) Resources are fully and efficiently employed. B) Technology is fixed. C) Production occurs over some specified time period. D) The amount of resources available for production can be changed quickly.
When demand is elastic, a decrease in price will
A. decrease total revenue. B. not change total revenue. C. reduce quantity demanded. D. increase total revenue.