When is demand said to be inelastic?
a) if the quantity demanded changes only slightly when the price of the good changes
b) if demand shifts only slightly when the price of the good changes
c) if buyers respond substantially to changes in the price of the good
d) if the price of the good responds only slightly to changes in demand
Ans: a) if the quantity demanded changes only slightly when the price of the good changes
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Sam decides to buy a $75 ticket to a particular New York professional hockey game rather than a $50 ticket for a particular Broadway play. We can conclude that Sam:
A) is relatively unappreciative of the arts. B) obtains more marginal utility from the play than from the hockey game. C) has a higher "marginal utility to price ratio" for the hockey game than for the play. D) has recently attended several other Broadway plays.
During a recession, the average duration of unemployment tends to
A) be unpredictable. B) be about the same as during an expansion. C) decrease. D) increase. E) remain constant.