Which statement below does not describe a demand curve that is unit elastic?
a. The percentage change in quantity demanded equals the percentage change in price.
b. An increase in price will not change total revenue.
c. The price elasticity of demand equals one.
d. A change in price will not change quantity demanded.
e. A decrease in price will not change total revenue.
D
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The rising price of oil has made it feasible to extract oil out of oily sand in Canada. Concerning the oil market this is an example of
A) a higher price elasticity of supply in the long run. B) a higher price elasticity of supply in the short run. C) a higher price elasticity of demand in the short run. D) an inelastic long-run supply of oil.
The U.S. can produce pizza for $7.50 each and barrels of beer for $37.50 each, and Germany can produce pizza for €5 each and barrels of beer for €15 each (€ is the symbol for the euro, the currency Germany uses). If the exchange rate is 1
50 $/€ then A) the U.S. has a comparative advantage in the production of beer. B) neither country has a comparative advantage in the production of beer. C) the U.S. has a comparative advantage in the production of pizza. D) the U.S. has a comparative advantage in the production of beer and pizza.