When the price of candy bars is $1.00, the quantity demanded is 500 per day. When the price falls to $0.80, the quantity demanded increases to 600 . Given this information and using the midpoint method, we know that the demand for candy bars is
a. inelastic.
b. elastic.
c. unit elastic.
d. perfectly inelastic.
a
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The order of Soviet dictator Joseph Stalin to farmers in the 1930s to produce capital equipment rather than food
a. was based on government support payments for agriculture. b. relied on foreign assistance. c. was an illustration of the capital formation method. d. was an illustration of the brute force method of breaking the poverty cycle, and it was a very successful policy. e. was an illustration of the brute force method of breaking the poverty cycle, and it meant starvation for millions of farmers.
The demand for a monopolistically competitive firm's product is
A. perfectly elastic. B. more elastic than for a monopoly. C. more inelastic than for a monopoly. D. perfectly inelastic.
In the above figure, an increase in aggregate demand has resulted in
A. economic growth. B. an inflationary gap. C. a decline in the price level. D. a recessionary gap.
Two countries, Blue Violet and Orange Rose, produce only two goods: teapots and coffeepots. The table above gives their production possibilities. ________ has a comparative advantage in teapots and ________ has a comparative advantage in coffeepots
A) Orange Rose; Blue Violet B) Blue Violet; Orange Rose C) Blue Violet; Blue Violet D) Orange Rose; Orange Rose