If 400 apple pies are sold at $4 per pie, but 600 apple pies are sold at $3 per pie, we know:
a. that the demand for pies is elastic over that price range
b. that the demand for pies is inelastic over that price range.
c. that the demand for pies is unit elastic over that price range.
d. nothing about the elasticity of demand.
a
You might also like to view...
Refer to the Article Summary. Implementing a negative interest rate policy, as was advocated by the president of the Federal Reserve Bank of Minneapolis, would be an example of ________ monetary policy designed to ________ aggregate demand
A) contractionary; increase B) expansionary; increase C) expansionary; decrease D) contractionary; decrease
Exhibit 30-4
?
A. Q1. B. Q2. C. Q1 - Q2. D. Q2 - Q1.
It is usually assumed that a perfectly competitive firm's supply curve is given by its marginal cost curve. In order for this to be true, which of the following additional assumptions are necessary? I. That the firm seeks to maximize profits. II. That the marginal cost curve be positively sloped. III. That price exceeds average variable cost. IV. That price exceeds average total cost
a. All of the above. b. I and II but not III and IV. c. I and III but not II and IV. d. I, II and III, but not IV.
The point of tangency between a consumer's budget constraint and his or her indifference curve represents
a. complete satisfaction for the consumer. b. the equivalence of prices the consumer pays. c. constrained utility maximization for the consumer. d. the least he or she can spend.