Zero elasticity in either a supply or demand curve occurs when a price change of one percent results in a quantity change of one percent.
Select whether the statement is true or false.
A. True
B. False
B. False
This statement is false. Constant unitary elasticity in either a supply or demand curve occurs when a price change of one percent results in a quantity change of one percent.
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The price at which a good or service is traded on international markets is called the ________ price.
A. world B. market C. universal D. international
Refer to Figure 18-1. Currency speculators believe that the value of the euro will increase relative to the dollar. Assuming all else remains constant, how would this be represented?
A) Supply would increase, demand would decrease and the economy moves from C to B to A. B) Supply would decrease, demand would decrease and the economy moves from B to C to D. C) Supply would decrease, demand would increase and the economy moves from A to D to C. D) Supply would increase, demand would increase and the economy moves from D to A to B.
As a consumer eats additional pieces of pizza, total utility will _____
a. always keep increasing b. always keep decreasing c. keep increasing until dissatisfaction sets in d. keep decreasing until dissatisfaction sets in e. initially keep decreasing until it becomes zero and then increase
A soft-drink bottling company supplies six-packs of orange flavored soda to retailers for a price of $2 each. If the components in each six-pack costs the bottling company $1.50, the value added, to each six-pack, by the bottling company is:
a. $2.00. b. $1.50. c. $1.25. d. $1.00. e. $0.50.