Suppose that a family saves and borrows to buffer itself against changes in income. These actions relate to which problem in measuring inequality?

Suppose that on a typical day, a restaurant owner usually sells 18 club sandwiches. However, after lowering the price of a club sandwich from $6.75 to $5.95, the owner discovered that sales increased to 23 sandwiches per day. Based on this information, the restaurant owner calculated that the demand elasticity for club sandwiches was approximately:

a. -0.05 b. -0.52 c. -1.94 d. -20.2

A deadweight loss of consumer and/or producer surplus occurs when

a. producers fail to maximize profits. b. mutually beneficial transactions cannot be completed. c. consumers do not maximize their utility. d. the price of inputs increases.