Suppose consumers of cigarettes can be classified into two groups: heavy users and light users. Heavy users purchase more cigarettes and are less sensitive to price changes relative to light users. To determine whether a heavy user suffers a greater loss of consumer surplus than a light user does when the price of cigarettes increases, one would need to know
A) each group's average income.
B) the actual quantities purchased by each.
C) each individual's price elasticity of demand.
D) no additional information.
D
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The long run is defined as
A) any time after six months. B) any time after one year. C) the period of time when all resources are fixed. D) the period of time when most (more than 50 percent) resources are variable. E) the period of time when all resources are variable.
A geologist tells the ACME Mining Company she's certain there is a gold vein one thousand feet below the surface of its property, but ACME still decides not to mine for that gold. How would an economist explain their decision?
A) The owners of ACME aren't as greedy as other mining operations. B) The owners of ACME probably distrust the geological reports. C) The owners of ACME feel the additional costs of mining for gold outweigh the additional benefits. D) The owners of ACME are ignorant of the basic principles of economics.
State banks failed to find a way to print money under the Constitution
Indicate whether the statement is true or false
Elasticity measures how responsive quantity is to changes in price
a. True b. False Indicate whether the statement is true or false