Suppose when the price of movie tickets is $7.50, the quantity demanded is 550, and when the price is $8.50, the quantity demanded is 450. Using the mid-point method, the price elasticity of demand is:
A. 0.625
B. 0.625
C. 1.6
D. 1.6
C. 1.6
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Suppose all of the major computer manufacturers announced that beginning next month there would be major price reductions on their computers. This would cause the current demand for computers to
a. increase. b. decrease. c. remain unchanged. d. increase if the demand for computers was relatively inelastic, but decrease if the demand for computers was relatively elastic.
What type of economics would most typically deal with aggregates?
A) macroeconomics B) microeconomics C) normative economics D) financial economics
Keeping interest rates stable is:
A. a key goal, because stable interest rates will result in all other goals being achieve B. not a goal of the central bank. C. a secondary goal for central banks. D. the most important goal for a central bank.
Answer the next question based on the following demand and cost data for a specific firm.Demand DataCost Data(1) Price(2) Price(3) QuantityTotal OutputTotal Cost$50$3522$4545303355402544703520559030156611525107714520588180If columns 1 and 3 are this firm's demand schedule, the profit-maximizing level of output will be
A. 6 units. B. 3 units. C. 4 units. D. 5 units.