The price elasticity of demand measures the responsiveness of
A) supply to demand changes.
B) equilibrium changes.
C) quantity demanded to changes in the price.
D) demand to supply changes.
E) the price to changes in quantity demanded.
Ans: C) quantity demanded to changes in the price.
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A prolonged recession in Europe should decrease the
A. supply of U.S. dollars. B. demand for U.S. dollars. C. supply of U.S. goods and services. D. demand by Americans for euros.
To produce 10 shirts, the total cost is $80; to produce 11 shirts, the total cost is $99. The average total cost of the 11th shirt is equal to
A) $8. B) $9. C) $80. D) $99. E) $19.
Government intervention in agricultural markets in the U.S. began
A) during the Korean War. B) during World War II to ensure that enough food was available for domestic consumption. C) after World War I in order to assist farmers to adjust from a war-time economy to a peace-time economy. D) during the Great Depression.
Refer to Figure 10.1. If the level of real GDP is initially Y3, firms will ________ production until equilibrium is reached at ________
A) increase; Y3 B) decrease; Y3 C) increase; Y1 D) decrease; Y1