The value of the absolute price elasticity of demand for good A is 4. The absolute price elasticity for good B is 1. Which good's quantity demanded is more responsive to a change in price?

The simple circular flow of income shows that the total income in an economy equals

A) all taxes paid by households. B) total expenditures. C) the total amount of money supplied by the government. D) total profits earned by firms.

John moved his office from a building he was renting downtown to the carriage house he owns in back of his house. How will his costs change?

a. explicit and implicit costs rise b. explicit costs rise; implicit costs fall c. explicit and implicit costs fall d. explicit costs fall; implicit costs rise e. not enough information is given