Figure 9-7 shows cost curves for Penny’s Parasols, a perfectly competitive firm. At which of the points would Penny’s Parasols be certain to close down?
a.
A
b.
B
c.
C
d.
D
e.
E
a
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If the price elasticity of demand for a good is 0.45, it is most likely that the good
a. has many close substitutes b. is a luxury good c. is high-priced d. is a complementary good e. has a demand curve that is price inelastic
What three types of goods are included in investment spending?
If the price of smartphones was to increase, then
A) the demand for smartphone apps would decrease. B) the demand for smartphone apps would increase. C) the quantity of smartphone apps demanded would increase. D) the quantity of smartphone apps demanded would decrease.
Prescription drug prices increased in 2006 due to?
a. manufacturer price increases b. wholesaler price increases c. implementation of the Medicare Part D plans d. a spike in illnesses in 2006