Suppose the company that owns the vending machines on your campus has doubled the price of a can of soda. They then notice that they are selling approximately 15 percent fewer sodas. The price elasticity of demand for sodas from the campus vending machines, therefore, is:
A. unit elastic.
B. inelastic.
C. elastic.
D. infinite.
Answer: B
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In a Dutch auction, the higher the bid, the ________ the surplus and the ________ chance of winning
A) higher; lower B) lower; higher C) higher; higher D) lower; lower
A monopolistically competitive industry is like a purely competitive industry in that:
A. nonprice competition is a feature in both industries. B. firms in both industries face a horizontal demand curve. C. each industry produces a standardized product. D. neither industry has significant barriers to entry.
Other things being equal, when the money price of a good increases, its relative price
A) stays the same. B) increases. C) decreases. D) falls to zero.
What does unlimited liability mean?
A) The owners of the business are personally responsible for paying expenses incurred by the business. B) Only employees can have a claim on the assets of the business. C) The personal assets of the owners cannot be claimed if the business is bankrupt. D) Anybody with a liability against a firm can claim up to three times their liability.