If the elasticity of demand for peaches is 1.76 and the elasticity of demand for apples is 1.59, then consumers are
A) more sensitive to a change in the price of peaches than they are to a change in the price of apples.
B) less sensitive to a change in the price of peaches than they are to a change in the price of apples.
C) more sensitive to a change in the quantity of peaches than they are to a change in the quantity of apples.
D) less sensitive to a change in the quantity of peaches than they are to a change in the quantity of apples.
Question 2
Bill Bonecrusher graduates from college with a choice of playing professional football at 2 million a year or coaching for 50,000 a year.
He decides to play football, but eight years later, though he could continue to play football at 2 million a year, he quits football to make movies for 3 million a year. His opportunity cost of playing football at graduation was ________ and eight years later the opportunity cost of making movies was ________. A) 50,000; 2 million
B) 2 million; 2 million
C) 2 million; 3 million
D) 50,000; 50,000
Marginal Supply - Demand Curve
Growth in the demand for oil from the developing world
The demand for energy is met by burning coal and other fossil fuels
The demand for cheap coal to generate electrical power is rising
Economic recession in 2008 saw a small decrease in demand
During a period of high power demand, the voltage output of the power company is reduced by ...