In the figure above, the demand is elastic in the range of prices between
A) $3.50 and $4.50 per cup
B) $2.50 and $3.50 per cup
C) $1.00 and $2.00 per cup
D) $2.00 and $4.00 per cup
E) $1.75 and $2.75 per cup
A
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In the U.S. over the past century, increases in labor
a. supply have outpaced increases in labor demand, causing the average wage rate to fall b. supply have outpaced increases in labor demand, causing the average wage rate to rise c. demand have outpaced increases in labor supply, causing the average wage rate to fall d. demand have outpaced increases in labor supply, causing the average wage rate to rise e. demand have occurred at the same pace as increases in labor supply, so the average wage rate has remained unchanged
The size of the multiplier associated with an initial increase in spending will be:
A. the same whether or not inflation occurs. B. diminished if inflation occurs. C. zero if any increase in the price level occurs. D. enhanced if inflation occurs.