The supply of product X is unit-elastic if the price of X increases by ________ and, as a result of that price change, the quantity supplied ________
A. 8%; increases by 8%.
B. 5%; increases by 7%.
C. 7%; increases by 5%.
D. 10%; stays the same.
Answer: A
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Tina's marginal utility of her first piece of cake is 15, while Jerry's marginal utility of his first piece of cake is 24 . An economist would conclude that:
a. Tina likes cake more than Jerry likes cake. b. Jerry likes cake more than Tina likes cake. c. Tina likes cake less than Jerry likes cake. d. Jerry likes cake less than Tina likes cake. e. we can't make a comparison to see who values cake more.
How are aggregate supply and stagflation related?
a. Stagflation usually causes an adverse shift in aggregate supply. b. An adverse supply shift usually causes stagflation. c. Stagflation only follows inflation, with no relation to aggregate supply. d. There is no relationship between the two.
Which of the following changes will occur to the market for movie tickets when the price of the tickets rises
A. The demand curve will shift out, causing the price to increase and the quantity to decreases. B. The demand curve will shift out, causing the price to increase and the quantity to increases. C. The demand curve will shift in, causing the price to decrease and the quantity to increases. D. The demand curve will not shift, since the price of the tickets changed. Instead, given the law of demand, the quantity-demanded of the tickets will be reduced.
Suppose that David buys the same number of energy drinks every weekend no matter what happens to the price of the energy drinks. What does this suggest about David's demand for energy drinks?
A. It is elastic. B. It is perfectly inelastic. C. It is unit elastic. D. It is not something that can be characterized without knowing the prices of the energy drinks.