Assuming price elasticity of demand is reported as an absolute value, a price elasticity of one indicates:
A. the percentage change in quantity demanded will equal one.
B. the percentage change in quantity demanded will equal the percentage change in price.
C. both the percentage change in price and quantity demanded must equal one.
D. the percentage change in quantity demanded and the percentage change in price must sum to one.
Answer: B
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Price discrimination by sellers usually results in
A) coercing people into buying goods they don't want to purchase. B) coercing people into paying higher prices than they want to pay. C) less total but more net revenue for the seller. D) new and additional opportunities for some buyers.
According to the misperceptions theory, when P < Pe, output is ________ its full-employment level and the short-run aggregate supply curve must shift ________ to restore full employment
A) below; upward B) below; downward C) above; upward D) above; downward
When an economy is in a recession,
a. strong demand for investment funds will push interest rates upward. b. strong demand for resources will push the prices of resources upward. c. the real interest rate will tend to rise. d. the unemployment rate will rise above its natural rate.
The number of people employed in the competitive market depicted in Figure 30.2 at a wage of $20.00 per hour is
A. 160. B. 192. C. 180. D. 0.