If the demand curve for tacos is a downward sloping straight line, at which of the following prices is the demand the most elastic?
A) a price of $0.50 per taco
B) a price of $1.00 per taco
C) a price of $1.50 per taco
D) There is not enough information given to determine at which price the demand is most elastic.
C
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For a normal good, an increase in consumer income will lead to I. a movement down the demand curve II. a rightward shift in the demand curve III. a reduction in supply
A) I only B) II only C) III only D) Both II and III
China has 20 percent of the world's population and 10 percent of the world's farmable land. Which of the following will be predicted by the Heckscher-Ohlin theory if China begins to trade with other countries?
A. China will export capital-intensive goods like automobiles and import labor-intensive goods like clothing. B. China will export land-intensive goods like wheat and import labor-intensive goods like clothing. C. China will shift resources into the production of agricultural goods and away from manufactured goods. D. China will shift resources from the production of agricultural goods to the production of labor-intensive goods.