Refer to above figure. With free trade and no tariffs, what is the quantity of Widgets imported?
What will be an ideal response?
90
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Avital and Joshua each have their own business selling lemonade in front of their houses. When they each charge 25 cents per glass, their total revenues are equal. However, when they each charge 40 cents per glass, Avital's revenues are bigger than Joshua's revenues. This is because:
A. Joshua faces a more inelastic demand curve. B. Avital faces a more elastic demand curve. C. Joshua faces a more elastic demand curve. D. Avital faces a less inelastic demand curve.
The change in the quantity demanded of gas because of increasing gas prices over the last decade:
A. was more elastic than it has been in the last six months. B. has become a non-issue for people now that they are used to higher gas prices. C. has been relatively the same over both time periods. D. was less elastic than it has been in the last six months.