When the price of a product increases from $35 to $45, the quantity supplied increases from 30 units to 40 units per week. Using the midpoint method, the price elasticity of supply is
A) 0.00.
B) -1.1.
C) 1.14.
D) 1.35.
E) 0.88.
C
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Marking to market refers to
A) the determination of the prices of options contracts by the interaction of demand and supply. B) the determination of the prices of futures contracts by the interaction of demand and supply. C) the settlement of gains and losses on futures contracts each day. D) the settlement of gains and losses on forward contracts each day.
An increase in ________ in an open economy of any size leads to ________
A) desired saving; an increase in net capital outflows B) desired investment; a decrease in net capital outflows C) desired saving; an increase in the trade balance D) all of the above E) none of the above
If total revenues decline when the market clearing price increases, then we know that
A) demand is inelastic. B) demand is elastic. C) demand is unit-elastic. D) demand has zero elasticity.
Economists try to address their subject with a scientist's objectivity
a. True b. False Indicate whether the statement is true or false