If the price elasticity of demand for an annual magazine subscription is 1.6 in the range between $26 and $30, what happens in the market when the subscription price rises from $26 to $30?
a. There will be an increase in the total revenue the magazine collects on its subscriptions.
b. There will be a decrease in the total revenue the magazine collects on its subscriptions.
c. Magazines will become a normal good.
d. Magazines will become an inferior good
Ans: b. There will be a decrease in the total revenue the magazine collects on its subscriptions.
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A major problem with using a tradable emission allowances system to control pollution is
A) that it grants firms a license to pollute. B) the difficulty in determining the emissions target. C) it discourages firms from implementing cost-effective pollution control technology. D) that it does not eliminate pollution completely.
Other things being equal, the wages of clerical workers would tend to decrease if there was an increase in:
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