Which is NOT a determinant of the elasticity of demand?
A. The proportion of income consumers spend on the good
B. The number of sellers
C. The availability of substitutes
D. Time
B. The number of sellers
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In the figure above, suppose the demand for dollars temporarily decreases so that the demand curve shifts to D2. To maintain the target exchange rate, the Fed
A) can sell dollars. B) can buy dollars. C) must violate both interest rate parity and purchasing power parity. D) cannot maintain the target exchange rate.
Joanne can choose to selectively disclose information to her superiors in an attempt to elicit decisions in her favor if:
a. the information is easily available to all. b. she is the only source of the information concerned. c. the information is easily verifiable. d. there are other sources of the same information in the firm.
To stabilize the economy rational expectations theorists favor the use of
A. wage and price controls. B. discretionary fiscal policy. C. discretionary monetary policy. D. policy rules.
Suppose that firms are located in a circle on an island. You are given transportation costs, fixed costs, variable costs, and demand (assume that customers are spread evenly along the circle). In an example of restaurant location on an island, if the number of people on the island doubled, the number of restaurants
A. would halve.
B. would stay the same.
C. would double.
D. would increase by a factor of 
.