Empirical estimates of the price elasticity of demand in Table 3.4 suggest that the demand for household consumption of alcoholic beverages is:
a. highly price elastic
b. price inelastic
c. unitarily elastic
d. an inferior good
e. none of the above
Question 2
The parent company would want to reward managers based on division revenues because
a. It decreases the incentives for the managers to make good decisions for their division
b. It increases the incentives for the managers to make good decisions for their divisions
c. It does not change the motivations for the managers
d. None of the above
The population of Asia increases rapidly, the demand for food and water is also growing
The growing demand for electrical power, carbon sequestration and storage must be a priority
The introduction of a new generation of electric and hybrid cars will reduce the demand for oil
Price of Computers, 1982–2010
table
Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ...