A bank increased its fees for processing personal checks from 18 cents to 24 cents per check. In a statement accompanying the announcement, the bank said that some customers who reduce the number of checks they write would see no change in their overall account fee. What is the implication of this statement for these customers?
a. The price elasticity of demand for check writing is less than one.
b. The price elasticity of demand for check writing is greater than one.
c. They are indifferent to the check writing fee.
d. They have a unit-elastic demand for check writing.
Ans: d. They have a unit-elastic demand for check writing.
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The lack of which of the following represents a scarcity?
a) orange juice because the trucks carrying it are on strike b) enough workers to finish two jobs because there's a limited supply of workers c) enough workers to work at night because the pay is too low d) grapefruit juice because very few people want to buy it
If price increases 6% and the quantity exchanged decreases 6%, what does that tell us about the elasticity of supply? a. It tells us nothing about the elasticity of supply. b. Supply is elastic
c. Supply is inelastic. d. Supply is unit elastic.