The market will be in equilibrium if ________ is set ________ the equilibrium price.

A. a price floor; below
B. actual price; below
C. actual price; above
D. a price ceiling; below


Answer: A

Economics

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When the price of one pen is $1, 50 notebooks are demanded. When the price per pen increases to $5, the number of notebooks demanded decreases to 30. What is the cross-price elasticity of demand between the two goods using the arc method?

A) 0.1 B) -0.375 C) 3 D) -3

Economics

Suppose inter-city bus travel is a substitute for transportation by train. Which of the following could then be TRUE?

A) The cross elasticity between bus and train travel could equal 0.65. B) The cross elasticity between bus and train travel could equal 1.0. C) The cross elasticity between bus and train travel could equal 1.25. D) All of the above could be true.

Economics

Someone who values a lottery at more than the expected value is

a. a risk lover b. risk neutral c. risk averse d. one who tends to play lots of lotteries

Economics

Unemployment data in the U.S. are published by the:

a. Bureau of Economic Analysis. b. Bureau of Labor Statistics. c. Department of Commerce. d. Bureau of Federal Intelligence. e. Internal Revenue Service.

Economics