If a 35 percent increase in price of golf balls led to an 42 percent decrease in quantity demanded, then the demand for golf balls is
A) unit elastic.
B) perfectly elastic.
C) relatively inelastic.
D) relatively elastic.
Answer: D
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Which of the following is true of the long-run aggregate supply curve? a. It is vertical
b. The level of RGDP supplied does not change as the price level changes. c. The level of RGDP supplied changes with the levels of capital, land, labor, and technology available to the economy. d. all of the above
Fiscal policy refers to the idea that aggregate demand is affected by changes in
a. the money supply. b. government spending and taxes. c. trade policy. d. All of the above are correct.
Jacinda, a college student, waits tables at a local diner to earn extra cash. In order to differentiate herself from other wait staff, Jacinda took a life saving course from the local hospital, where she learned the proper procedures to use in cases of choking. This is an example of a market signal.
Answer the following statement true (T) or false (F)
In the figure above, compared to a perfectly competitive industry with the same costs, a single-price, unregulated monopoly will raise the price by
A) $2.00 per unit. B) $4.00 per unit. C) $6.00 per unit. D) $8.00 per unit.