Which of the following products has an elastic demand?
A. water
B. coffee
C. cars
D. salt
Answer: C
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The crowding-in effect depends on the fact that often a decrease in taxes causes a(n)
A. decrease in interest rates and an increase in the price of existing bonds. B. increase in output, which induces more investment. C. increase in interest rates and a decrease in the price of existing bonds. D. decrease in interest rates and the price of existing bonds.
If price of a good rises, what happens to the demand for that good, all other things held constant?
A. The demand increases. B. The demand decreases. C. The demand does not change. D. The outcome depends upon the supply of the good.
Sammy has a drone that he values at $1,500. Frank values the same drone at $1,000. The government offers a subsidy of $800 to the buyers of drones, and Sammy and Frank agree on a price of $1,600. The cooperative surplus for Sammy and Dean will be
A) $200. B) $300. C) $600. D) $800.
If the price of corn goes up by $1 a bushel and the quantity supplied rises by 100 bushels, the price elasticity of supply has to be 100.
Answer the following statement true (T) or false (F)