If the slope of a demand curve is constant, then we know that
A) elasticity of demand is also elastic everywhere.
B) elasticity of demand is constant and elastic.
C) elasticity of demand is inelastic everywhere.
D) elasticity of demand varies along the demand curve.
Answer: D
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The percentage markups which sellers use
A) are based on their estimates or guesses about marginal cost and marginal revenue for particular goods. B) are between 10 and 15 percent. C) are the same on all products of a single firm. D) differ between products but are the same on average for all firms.
Which of the following will reduce the supply of motorcycles?
a. An increase in the population age 16 to 35, the primary consumers of motorcycles. b. An increase in taxes imposed on motorcycle producers. c. A technological improvement reducing the production costs of motorcycles. d. A government study that reveals motorcycle riders, on average, live 10 years longer than those who don't ride motorcycles.