e charge for a long-distance telephone call is $1.00 a minute between 8 AM and 5 PM and $.75 a minute between 5 PM and 11 PM. This can be explained by the fact that the demand for long-distance telephone calls is __________ between 8 AM and 5 PM and the demand for long-distance telephone calls is __________ between 5 PM and 11 PM.a.more elastic; less elasticb.less elastic; more elasticc.perfectly elastic; perfectly inelasticd.zero; one24.The ABC Computer Company spends a lot of money for advertising designed to convince you that their personal computers are superior to all other computers and that the other computers are essentially clones of one another. If the ABC Company is successful,a.the demand for ABC personal computers and the demand for other firms' personal computers will become less price elastic.b.the demand for ABC personal computers and the demand for other firms' personal computers will become more price elastic.c.the demand for ABC personal computers will become more price elastic but the demand for other firms' personal computers will become less price elastic.d.the demand for ABC personal computers will become less price elastic but the demand for other firms' personal computers will become more price elastic.25.If the quantity demanded of tea decreases by 8% when the price of coffee decreases by 16%, the cross-price elasticity of demand between tea and coffee isa.0.5.b.-5.c.-2.d. -0.5.e. None of the above.26.One way to define an industry would be to group together products thata.all have the same price elasticity of demand.b.have an income elasticity of demand greater than one.c.all have the same elasticity of supply.d.have high and positive cross-price elasticity of demand. Page 927.The limits imposed on household choices by income, and product prices are thea.choice set.b.budget constraint.c.assumption of perfect knowledge.d.preference set.28.The law of diminishing marginal utilitya.refers to the decrease in to...
