The demand for most products is likely to be
a. more elastic in the long run than in the short run.
b. less elastic in the long run than in the short run.
c. equally elastic in the short and long run.
d. equally inelastic in the short and long run.
A
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The figure illustrates Anne's demand for books. At ________ a book, Anne's demand for books is inelastic
A) all prices between $15 and $30 B) all prices between $10 and $15 C) all prices between $10 and $20 D) all prices below $30
In the Keynesian model, everything else equal, a higher level of income
a. increases money demand and reduces the interest rate. b. increases money demand and increases the interest rate. c. increases savings and decreases the interest rate. d. increases investment and has no effect on the interest rate. e. both b and c.
Unlike perfectly competitive firms, monopolists can
a. earn positive short-run economic profit even if price is less than average variable cost at all rates of output b. sell any quantity of output at any price they choose c. earn long-run economic profits d. reduce the sales of other firms in the industry through advertising e. face a perfectly elastic demand curve
When government increases a fixed tax, consumption schedule
a. shifts downward in a parallel manner. b. shifts upward in a parallel manner. c. becomes horizontal. d. becomes vertical.