The price elasticity of demand measures
A) changes in demand.
B) how responsive market prices are to a change in demand.
C) how responsive consumers are to a change in price.
D) how responsive consumers are to a change in income.
Answer: C
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Because minimum wage is a price floor
A) it will be set below the market equilibrium price. B) it will create a deadweight loss. C) it will increase the number of jobs available in the labor market. D) it will maximize consumer surplus.
If Jet Cruises chooses to Ad, Easy Sail should ________ and earn ________ million in net profit.
Jet Cruises wants to prevent Easy Sail from entering the sailboat market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Jet Cruises and Easy Sail have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) Ad; $3 B) No Ad; $2 C) Ad; $5 D) No Ad; $4