While the demand for beer is relatively price inelastic, the price elasticity of demand for a particular brand is relatively high, due in large part to availability of close substitutes
Indicate whether the statement is true or false
TRUE
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Human capital can be increased through
A) investment in new technology. B) decreases in population. C) investment in new machinery. D) education, on-the-job training, and work experience. E) increasing the nation's production of consumption goods.
Refer to Figure 17-5. Consider the Phillips curves shown in the above graph. We can conclude from this graph that
A) the expected rate of inflation in this economy is 10 percent. B) ceteris paribus, a fall in the rate of inflation to 5 percent will increase unemployment to 7.5 percent in the short run. C) the natural rate of unemployment in this economy is 5.5 percent. D) All of the above are correct.
Refer to Figure 35.5. S1 represents the U.S. domestic supply of a good and S2 represents supply in the United States under conditions of free trade. If the United States imposes a tariff on this good, what will happen to the quantity imported?
A. Imports will decline as price increases and domestic production decreases. B. Imports will increase because producers will pass the cost of the tariff on to consumers. C. Imports will decline as price increases and domestic production increases. D. Imports will increase as price increases and domestic production increases.
In this consumer surplus graph, what would happen if the price dropped again the same amount as it dropped between P1 and P2, to a new level, P3?
a. Demand would remain at point C. b. Demand would move to point B. c. Consumer surplus would decrease. d. Consumer surplus would increase.