A straight-line downward-sloping demand curve has a price elasticity of demand which:

The price of a house in Year 1 was $50,000. If the price index for Year 1 is 101, and for Year 2 is 202, the value of the house in Year 2 is ________

A) $75,000 B) $150,000 C) $100,000 D) $55,000

The fact that rubies are more expensive than milk reflects the fact that for most consumers

A) the total utility from rubies exceeds that from milk. B) the marginal utility from rubies equals that from milk. C) more milk is consumed than rubies. D) a quart of rubies is considered to be prettier than a quart of milk.