If the demand for umbrellas is price inelastic,
A. the percentage change in quantity demanded is greater than the percentage change in price.
B. changes in price do not affect the number of umbrellas demanded.
C. the percentage change in price is less than the percentage change in quantity demanded.
D. if more umbrellas are sold as the result of a price decrease, total expenditures by consumers on umbrellas will decrease.
E. none of the above
Answer: D
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In the above figure, the monopsony wage rate is ________ and the quantity of labor is ________
A) $7.00; 150 hours B) $8.00; 200 hours C) $6.00; 100 hours D) $8.00; 100 hours
Which has greater elasticity: a supply curve that goes through the origin with slope of 1 or a supply curve that goes through the origin with slope of 4?
A. The supply curve with slope of 4. Slope and elasticity are directly related so the higher the slope, the higher the elasticity. B. They both have the same elasticity. Any supply curve with a positive slope has the same elasticity. C. They both have the same elasticity. Any supply curve that goes through the origin has an elasticity of 1. D. The supply curve with slope of 1. Slope and elasticity are inversely related so the lower the slope, the higher the elasticity.