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1. The elasticity of demand is:
A. equals the inverse of price to quantity demanded
B. measures how far the demand curve shifts from a chamge in price
C. tells us, how responsive consumer purchases are to price changes
D. estimates the relationship between quantity demand and production costs
2. Whether buyer or sellers pays more of a commodity tax depends on:
A) The relative price elasticity
B) The decision made by Congress
C) Whether the demand curve is negatively or positively sloped
D) Whether the supply curve is negatively or positively curved
Bridget Morrow is a sophomore at a state college and is running out of money. Wanting to continue her education, Bridget is considering a student loan. Explain her options. How can she best to minimize her Byron cost and maximize her flexibility?
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