Answer Happy

1.
Which of the following would be most likely to have a
price-elasticity of demand that is almost perfectly
price inelastic:
Recreation (fun outside)
Private education.
Narcotics (illegal drugs).
2.
If the actual market price were fixed at $6 per unit in the
figure below
There would be a surplus of 40 units.
There would be a surplus of 20 units.
There would be a shortage of 40 units.
There would be a shortage of 20 units.
3.
How do businesses deal with the consequences of a price
floor?
They provide less service for the same price.
They charge for things that were provided for free before the
floor.
They rebrand the surplus and sell it at a lower price.
4.
Given a constant technology, an increase in resources as a
result of a baby boom will:
shift the PPF (or PPC) downward
shift production function upward (outward).
shift the PPF upward (outward).
4.
The price elasticity of demand on the midpoint of the demand
curve is?
price elastic.
price inelastic.
unitary price elastic.