Given the indifference curve in the above figure, which point is preferred to point a?
A) point b
B) point c
C) point d
D) point e
B
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In the Keynesian liquidity preference framework, a rise in the price level causes the demand for money to ________ and the demand curve to shift to the ________, everything else held constant
A) increase; left B) increase; right C) decrease; left D) decrease; right
Market power guarantees profit
A) True, which is why firm's locate as far away from each other as possible. B) False, market power guarantees price greater than marginal cost. C) True, market power guarantees price greater than average cost. D) False, market power guarantees price equal to average cost.
If the quantity of bread demanded rises 2 percent when the price of bread declines 10 percent, then the price elasticity of demand is: a. 0.2
b. 1. c. 2. d. 10. e. Cannot be determined.
Scarcity guarantees that
A) demands will exceed wants. B) wants will exceed demands. C) demands will be equal to wants. D) most demands will be satisfied.