Edie looked at two apartments that were virtually identical except the one near the subway station was $1,800 a month and the one 10 blocks away was $300 less. What explains the difference in price?
a. The convenience of the train caused higher demand.
b. The supply of apartments near the train was higher.
c. The distant neighborhood was more desirable.
d. Demand was higher in the less active neighborhood.
a. The convenience of the train caused higher demand.
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
The following data represent a personal income tax schedule. Answer the next question on the basis of this information.Taxable IncomeTotal Tax$15,000$1,50030,0003,50060,0009,000120,00025,000If income increases from $15,000 to $30,000, the marginal tax rate is
A. 10.0%. B. 18.3%. C. 13.3%. D. 26.6%.
Suppose that from a new checkable deposit, First National Bank holds eight million dollars on deposit with the Federal Reserve, one million dollars in required reserves, and faces a required reserve ratio of ten percent
Given this information, we can say First National Bank has ________ million dollars in excess reserves. A) two B) eight C) nine D) ten
In which of these industries would you expect the least elastic response from suppliers?
a. fast food b. soft drink c. road building d. aircraft e. Picasso paintings