Assume that corn and soybeans are alternatives that could be grown by most farmers. An increase in the price of corn will
a. increase the supply of corn
b. increase the supply of soybeans
c. decrease the supply of soybeans
d. decrease the supply of corn
e. have no effect on the supplies of corn and soybeans
C
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Suppose Julia and Zach are the only consumers of milk. Julia's demand for milk is defined as QdJulia = 12 - 3P at prices below $4 and zero for prices above $4. Zach's demand for milk is defined as QdZach = 10 - 2P at prices below $5 and zero for prices above $5. In this case, the market demand curve for milk is:
A. is upward sloping. B. a downward sloping straight line. C. kinked at a price of $5. D. kinked at a price of $4.
If the Fed raises the legal reserve requirement to 40 percent, and if the total money supply is at its maximum and is $750, the initial deposit must have been
a. $40 b. $250 c. $300 d. $450 e. $1,875
Horizontal equity can be difficult to assess because it is difficult to compare the similarity of tax payers
a. True b. False Indicate whether the statement is true or false
The idea of the Law of Demand, as applied to electric cars, assumes which of the following to be constant?
A. Price of electric cars B. Price of gasoline cars C. Quantity of electric cars demanded by buyers D. How much sellers are charging customers for electric cars