If the percentage change in the quantity of teapots demanded is greater than the percentage change in the price of teapots, then
A) the price elasticity of demand for teapots is greater than 1 in absolute value.
B) the demand for teapots is unit elastic.
C) the price elasticity of demand for teapots is less than 1 in absolute value.
D) the price elasticity of demand for teapots is equal to zero.
A
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A) a reduction in minimum wages B) an increase in public-service employment C) an increase in subsidized private employment D) a reduction sales taxes
Why do price levels increase when government adopts fiscal or monetary policy to correct the economy when it faces a recession and high unemployment?
According to ________, the redistribution of income from the rich to the poor causes an increase in total utility because of the law of decreasing marginal utility.
A. legal precedent B. distributional justice C. utilitarian justice D. the labor theory of value
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