If Weiskamp T-shirt Co lowers its price from $6 to $5 and finds that students increase their quantity demanded from 400 to 600 T-shirts, then the demand for Weiskamp T- shirts within the $5 to $6 price range is
a. price inelastic
b. price elastic
c. unit elastic
d. cross elastic
e. income inelastic
B
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The figure above shows Ilene's budget line. The price of a can of cat food is $2. Ilene's income per week is
A) $10. B) $40. C) $56. D) $160.
The intersection of supply and demand in the capital market determines the market equilibrium price and quantity in the:
A. rental market. B. purchase market. C. both the rental and purchase markets. D. Any of these statements could be true.
Employing a lawyer to draft and enforce a private contract between parties wishing to solve an externality problem is an example of
a. an opportunity cost. b. an implicit cost. c. a sunk cost. d. a transaction cost.
By free enterprise, we mean that:
A. individuals are free to produce those products that government agencies determine can be produced profitably. B. individual producers determine how to produce, but government agencies determine what will be produced. C. individuals may obtain resources, organize production, and sell the resulting output in any legal way they choose. D. products are provided free to those who cannot afford to buy them.