Using Figure 6-2, calculate the price elasticity of demand (dropping all minus signs) between P = 4 and P = 6.
A. 3.0
B. 0.33
C. 0.40
D. 1.25
Answer: B
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If the multiplier is 10, then the marginal propensity to consume (MPC) is
A) 9. B) 1. C) 0.9. D) 0.1.
In the one-input model, a convex producer choice set implies an upward sloping marginal cost curve.
Answer the following statement true (T) or false (F)
Sue views hot dogs and hot dog buns as perfect complements in her consumption, and the corners of her indifference curves follow the 45-degree line
Suppose the price of hot dogs is $5 per package (8 hot dogs), the price of buns is $3 per package (8 hot dog buns), and Sue's budget is $48 per month. What is her optimal choice under this scenario? A) 8 packages of hot dogs and 6 packages of buns B) 8 packages of hot dogs and 8 packages of buns C) 6 packages of hot dogs and 6 packages of buns D) 6 packages of hot dogs and 8 packages of buns
Virtual currency unit 3 (VCU3) is different from VCU2 because:
a. VCU2 cannot be spent in the real world; VCU3 can be spent in the real world. b. In terms of convertibility, there is no difference; both VCU2 and VCU3 can be purchased with and sold for legal tender. c. VCU3 can directly affect real world demand, whereas VCU2 cannot affect real-world demand. d. In terms of their potential to change a nation's M2 money supply, there is no difference because neither VCU3 nor VCU2 affect M