If price were increased from $38 to $39 and quantity demanded fell from 18 to 13, calculate elasticity; state whether demand is elastic, unit elastic, or inelastic; and find how much total revenue was when price was $38 and $39.
What will be an ideal response?
P1 = $38; P2 = $39; Q1 = 18; Q2 = 13
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Which of the following is clearly being sold below cost?
A) 2-for-the-price-of-one theatre tickets B) Senior-citizens discounts on meals at the local diner C) The free software included in the purchase of a new personal computer D) The magazine subscription offering 30% off the regular newsstand price E) None of the above.
As output increases, the AVC
a. increases. b. decreases. c. remains the same. d. falls and then rises.
Productive inefficiency could arise from
a. a waste of available labor b. a lack of resources c. an improvement in technology d. a movement along the production possibilities frontier e. too many goods being produced by the country or firm
The recession of 1937-38 had two basic causes: (1) _______________________; and (2) _________________________.
Fill in the blank(s) with the appropriate word(s).