Which of the following is likely to have the most price inelastic demand?
a. yoga mats
b. prescription medicine
c. protein powder
d. gym memberships
b
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Because the monopolistically competitive firm faces a ________ demand curve for its product, it ________ the price of its output
A) downward-sloping; can influence B) horizontal; can influence C) horizontal; cannot influence D) downward-sloping; cannot influence
To optimally deter crime, law enforcement authorities should:
A) set higher fines for crimes that have a lower probability of being caught. B) set the fine equal to the expected benefit, even if it is difficult to catch the offenders. C) ignore the probabilities of catching offenders and attempt to prevent crime at all costs. D) set very high fines regardless of the probability that an offender is caught.
The World View article in the text titled "Income Share of the Rich" reports, "In poor, developing countries the richest tenth of the population typically gets 40 to 50 percent of all income." Which of the following is a form of government intervention designed to change this situation?
A. Spillover costs. B. Rich nations opening up their domestic markets to exports from poor nations. C. Antitrust laws. D. Laissez faire.
Refer to the information provided in Figure 5.3 below to answer the question(s) that follow.
Figure 5.3Refer to Figure 5.3. Using the midpoint formula, if the price of a gardenburger increases from $7 to $9, the price elasticity of demand equals ________ and the increase results in a(n) ________ in total revenue.
A. -8; decrease B. -0.375; increase C. -0.5; decrease D. -2.67; decrease