When the price of good A is $50, the quantity demanded of good A is 500 units. When the price of good A rises to $70, the quantity demanded of good A falls to 400 units. Using the midpoint method, the price elasticity of demand for good A is
a. 1.50, and an increase in price will result in an increase in total revenue for good A.
b. 1.50, and an increase in price will result in a decrease in total revenue for good A.
c. 0.67, and an increase in price will result in an increase in total revenue for good A.
d. 0.67, and an increase in price will result in a decrease in total revenue for good A.
c
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The freedom of consumers to cast their dollar votes to buy, or not to buy, at prices determined in competitive markets describes:
A. socialism. B. communism. C. consumer sovereignty. D. the aspirations of Karl Marx.
The United States' economy would be operating at full employment with labor unemployment rate of ___ percent and a capacity utilization rate of _____ percent.
A. 5; 95 B. 5; 85 C. 10; 95 D. 10; 85