1. At a price of $4, quantity demanded is 100; and at a price of $6,...

1. At a price of $4, quantity demanded is 100; and at a price of $6, quantity demanded is 120. Using the midpoint formula, the price elasticity of demand is ________ and demand is ________.

A) 0.1; inelastic

B) 0.45; inelastic

C) -2.2; elastic

D) -10; elastic

2. In economics, scarcity means that

A) A shortage of a particular good will cause the price to fall.

B) A production possibilities curve cannot accurately represent the trade-off between two goods.

C) Society's desires exceed resources available.

D) The market mechanism has failed.

3 . To calculate the slope of a line, find the vertical distance between two points and divide it by the horizontal distance between the same two points. TRUE OR FALSE

Expert Solution

Rahul Sunny answered 2 years ago

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