The money price of a good is that price
A) expressed in constant 2005 dollars.
B) expressed in purchasing power against a common item like bread.
C) expressed in today's dollars.
D) that would clear the market.
C
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Inefficiency is best illustrated by which of the following?
a. foregoing civilian goods in order to produce more military goods b. limiting economic growth by reducing capital spending c. high levels of unemployment of labor and other resources that could be productively employed d. producing outside the production possibilities frontier
Suppose that a local supermarket sells apples and oranges for 50 cents apiece, and at these prices is able to sell 100 apples and 200 oranges per week. One week, the supermarket lowered the price per apple to 40 cents and sold 120 apples. The next week, they lowered the price per orange to 40 cents (after raising the price per apple back to 50 cents) and sold 240 oranges. These results imply that
the a. price elasticity of apples is lower than the price elasticity of oranges b. price elasticity of apples is higher than the price elasticity of oranges c. demand for apples is more price sensitive than the demand for oranges d. demand for oranges is more price sensitive than the demand for apples e. price elasticities of demand for apples and oranges are the same over these price ranges