If the percentage change in the quantity of teapots demanded is greater than the percentage change in the price of teapots, then
A) the price elasticity of demand for teapots is greater than 1 in absolute value.
B) the demand for teapots is unit elastic.
C) the price elasticity of demand for teapots is less than 1 in absolute value.
D) the price elasticity of demand for teapots is equal to zero.
A
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Refer to Figure 5-16. How much is Amit willing to pay per street light to have 4 street lights installed?
A) $3,600 B) $2,700 C) $1,800 D) $900
An important difference between the demand for a private good and the demand for a public good is that
A) the resources used to provide public goods are common resources or government owned; the resources used to produce private goods are all privately owned. B) individuals reveal their preferences for a public good but they do not have to reveal their preferences a private good. C) the demand for a private good produces consumption externalities; the demand for a public good produces production externalities. D) individuals reveal their preferences for a private good but they do not have to reveal their preferences for a public good.