Moving downward on a downward sloping linear demand curve, the absolute value of the price elasticity of demand
A) is constant.
B) increases continuously.
C) decreases continuously.
D) may either increase or decrease.
Answer: C
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Vinny consumes tacos and chicken wings. To keep his utility constant, he must consume more tacos if he consumes fewer chicken wings. This means that
A) Vinny's indifference curve for tacos and chicken wings must have a negative slope. B) Vinny's marginal rate of substitution must be constant along his indifference curves for tacos and chicken wings. C) Vinny's marginal utility from each good must be constant along his convex indifference curves for tacos and chicken wings. D) the prices Vinny pays for tacos and chicken wings are always the same.
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.
Capital gains are the profit earned from the sale of
A) stocks. B) real estate. C) bonds. D) all of the above.
Product innovation is a key advantage of having an imperfectly competitive market structure
a. True b. False Indicate whether the statement is true or false