Suppose the log-linear demand for widgets is found to be
Ln(Q) = 1.5 - 2ln(p)
According to this equation, a 10% increase in price will decrease Q by what percentage? What is the price elasticity of demand?
20%, E = -2.
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Refer to the table above. What is the total revenue of the monopolist when it charges a price of $9?
A) $1,250 B) $1,350 C) $1,750 D) $2,250
The "new classical" economics took advantage of the disarray and partial eclipse of Keynesian economics to reestablish macro model-building based on the assumption of price ________ and market ________
A) flexibility, clearing B) flexibility, non-clearing C) stickiness, clearing D) stickiness, non-clearing
Suppose buyers in the used car market are willing to pay $5,000 for a plum (high-quality) used car and $2,500 for a lemon (low-quality) used car. If buyers believe that 50% of the used cars on the market are lemons (low quality), what would they be willing to pay for a used car?
A. $2500 B. $3000 C. $3750 D. $5000
The supply curve does not:
A. represents producers' willingness and ability to sell. B. visually display the supply schedule. C. show the minimum price producers will accept for any given quantity. D. illustrate how consumers want to purchase goods and services.