When the price of hot dogs is $1.50 each, 500 hot dogs are sold every day. After the price falls to $1.35 each, 510 hot dogs are sold every day. At the original price, what is the price elasticity of demand for hot dogs?
A. 0.2
B. 66.67
C. 2
D. 5
Answer: A
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
The above figure shows the market for DVDs. The government decides that all citizens deserve to watch affordable DVDs so a price ceiling of $12 per DVD is placed on DVDs. After this price ceiling is in effect, producer surplus equals ________
A) $900,000 B) $400,000 C) $200,000 D) $100,000 E) $1,800,000
Use the above figure. Total cost at the profit-maximizing output is closet to
A) $6,600. B) $9,600. C) $4,800. D) $8,000.
An English auction is
a. A sealed auction b. An oral auction c. An auction where bidders submit decreasing bids d. All of the above