1) In economics, choices must be made because we live in a world of
D) unlimited resources.
2) Which of the following statements about scarcity is true?
A) Scarcity refers to the situation in which unlimit
1) A change in all of the following variables will change the market demand for a
A) the price of the product.
B) population and demographics.
2) Which of the following will shift the demand
1. Suppose that you see a 2001 Volkswagen Jetta advertised in the campus newspaper for $8,750. If you knew it was reliable you would be willing to pay $10,500 for it. If you knew it was unreliable, you would be willing to pay $7,000 for it
1) Carrie Bradshaw claims that when it comes to buying shoes, "price is no object."
If this is true, then her demand for shoes is
A) perfectly elastic.
B) perfectly inelastic.
C) unit elastic.
2) Jenna runs a small boutique in Cap
Principles of Microeconomics
Homework 3 & 4
Due Tuesday Nov 1st
1) Price elasticity of demand measures
A) how responsive suppliers are to price changes.
B) how responsive sales are to changes in the price of a related good.
C) how responsive quantity dema
of Labor (dollars) (dollars)
Jose operates a bu