Suppose that at the equilibrium price and quantity, the marginal revenue is ?$15 and the price elasticity of demand for a linear demand function is ?0.75. Then we know that the equilibrium price is:
A. ?$45.
B. $45.
C. ?$5.
D. $5.
Answer: B
You might also like to view...
If nominal GDP increases, which of the following will always take place?
A) Output will have increased but prices will have fallen or remained the same. B) Prices will have increased but output will have fallen or remained the same. C) Both output and prices will have increased. D) none of the above
Figure 5-13
According to Figure 5-13, if the price of good X falls, a consumer making her optimal decision will move from a point on
a.
U1 to a point on U3.
b.
U2 to a point on U3.
c.
U1 to a point on U3.
d.
U2 to a point on U1.
Intel Corporation, a major manufacturer of microchips, saw the demand for its product drop by 25%. Even though the demand for its product decreased, Intel did not cut the wages of its nonunionized workers. This is an example of
A. employment-at-will. B. an explicit contract not to cut wages. C. an implicit or social contract not to cut wages. D. a relative-wage contract.
If the risk associated with a company goes down, you would expect the price of its stock to
A. rise. B. fall. C. be unaffected. D. fall to zero.