Suppose the Chicago Bears football team raises ticket prices by 13 percent and as a result the quantity of tickets demanded decreases by 21 percent. This response means that the demand for Bears tickets is
A) inelastic.
B) elastic.
C) unit elastic.
D) perfectly inelastic.
E) perfectly elastic.
B
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Which of the following events would increase the supply of tomatoes?
a. The introduction of mechanized tomato pickers, which raises the cost of production. b. An increase in wages for the tomato pickers. c. A decrease in the cost of fertilizers for the tomato plants. d. Unseasonably hot, dry weather in the tomato-growing regions of the nation. e. A decrease in the price of pasta products.
If the price of inputs rises and foreign income rises:
a. Price index falls, and real GDP rises. b. Price index falls, and real GDP falls. c. Price index falls, and the change in real GDP is uncertain. d. Price index rises, and the change in real GDP is uncertain. e. The change in price index is uncertain, and real GDP falls.
Which of the following describes how the marginal product of a package-delivery business might change when it adds a second delivery van?
a. The on-time delivery rate rises by 40 percent. b. The cost per delivery falls by 25 percent. c. The delivery area expands by 30 percent. d. Fuel and service costs rise by 85 percent.
An increase in aggregate demand will cause:
a. real domestic output to fall and have no effect on the price level b. The price level to increase and real domestic output to rise c. The price level to drop and have no effect on real domestic output d. Both real output and the price level to fall