Which of the following are created to calculate an overall average change in relative prices over time?
a. baskets of goods and services
b. base years
c. price indexes
d. inflation rates
c. price indexes
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Perfectly inelastic demand means that consumers
A) are willing to buy any quantity of the good at a given price, but none at higher prices. B) decrease their consumption as price rises. C) increase their consumption as price rises. D) will buy a certain quantity, regardless of price. E) will buy a huge, almost infinite amount more, if the price falls just a little.
In a competitive industry where different firms have different cost structures, the industry supply curve is:
A) upward sloping. B) downward sloping. C) vertical. D) horizontal.
The graph illustrates the market for British pounds, the currency of the United Kingdom. As the number of buyers of pounds increases and the number of sellers of pounds increases, the equilibrium price of a pound Question 19 options:
A. will remain the same. B. will rise. C. will fall. B. might rise, fall, or remain the same depending on whether the effect on buyers is larger than, less than, or the same as the effect on sellers. D. None of the above answers is correct.
Monopolistically competitive firms offer consumers more variety than perfectly competitive firms.
Answer the following statement true (T) or false (F)