If the price elasticity of demand for aluminum foil is 1.45, then a 2.4% decrease in the price of aluminum foil will increase the quantity demanded of aluminum foil by
a. 1.66%, and aluminum foil sellers' total revenue will increase as a result.
b. 1.66%, and aluminum foil sellers' total revenue will decrease as a result.
c. 3.48%, and aluminum foil sellers' total revenue will increase as a result.
d. 3.48%, and aluminum foil sellers' total revenue will decrease as a result.
c
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Suppose your instructor gave hats with your school's logo to half of your economics classmates. She then asked these students to value the hats, and the average response was $9 per hat
Under the endowment effect, we should expect that the average value assigned by the economics students who did NOT receive the hats to be: A) higher. B) lower. C) the same. D) We cannot answer this question without knowing more about the risk preferences of the students.
In a perfectly competitive market, the first firm to adopt a new cost-saving technological advance will
a. buy more resources b. suffer an economic loss c. earn an economic profit until other competitors adopt the technology d. export to foreign markets e. supply low income neighborhoods