If there is excess capacity in a production facility it is likely that the firm’s supply curve is ?

A. Price inelastic
B. None of these
C. Unit price elastic
D. Price elastic

If the income elasticity of demand for a good is negative it must be ?

A. An elastic good
B. An inferior good
C. A normal good
D. A luxury good

In 2000, the Economist estimated that only _________ of some 360 million internet users were in Africa ?

A. 60 million
B. 10 million
C. 3 million
D. Million

The marginal product model assumes that ?

A. Individuals pay the full cost of their education
B. Government subsidizes schooling
C. Education persons migrate more
D. Capital and unskilled labor are complements

If supply is price inelastic the value of the price elasticity of supply must be ?

A. Infinite
B. Zero
C. Less than 1
D. None of these

Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raises its price Rs40 per month the number of subscribers will fall to 20000 Using the midpoint method for calculating the elasticity what is the price elasticity of demand for cable TV in Small Town ?

A. 1.4
B. 0.66
C. 0.75
D. 2.0

Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raise its price to Rs 40 per month the number of subscribers will fall to 20000 At which of the following price does small Town Cablevision earn the greatest total revenue ?

A. Rs 0 per month
B. Rs 30 per month
C. Rs 40 per month
D. Either rs 30 or rs 40 per month because the price elasticity of demand is 1.0

If demand is linear (a straight line) then price elasticity of demand is ?

A. Elastic in the upper portion and inelastic in the lower portion
B. Inelastic in the upper portion and elastic in the lower portion
C. Inelastic throughout
D. Constant along the demand curve

If consumers think that there are very few substitutes for a good, then ?

A. Supply would tend to be price elastic
B. None of these answers
C. Demand would tend to be price inelastic
D. Demand would tend to be price elastic

The price elasticity of demand is defined as ?

A. The percentage change in the quantity demanded divided by the percentage change in income.
B. The percentage change in income divided by the percentage change in the quantity demanded
C. The percentage change in the quantity demanded of a good divided by the percentage change in the price of that good
D. None of these answers