"Price gouging," or significant price spikes, are typical caused by
A) a significant increase in consumer demand.
B) a significant increase in supplier greed.
C) government attempts to impose price caps.
D) no systematic relationship between supply and demand.
A
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Use the following graph to answer the next question. The economy is at equilibrium at point B. What would expansionary fiscal policy do?
A. Move the economy from point B towards point C. B. Move the economy from point B towards point A. C. Move the economy from point B downward along AD2. D. Move the economy from point B upward along AD2.
The figure above shows the market for polio vaccination in Africa
a) If the market is competitive and left unregulated, how many doses of vaccine will be administered? b) If the Melinda and Bill Gates Foundation underwrites the cost of the vaccine by paying for a large fraction of the preparation and delivery cost, what will happen to the number of doses administered? Why?
As income rises ________
A) the number of transactions households and firms undertake should increase B) wealth also rises C) demand for real money balances should increase D) all of the above E) none of the above
In calculating the Consumer Price Index
A. the price of each item is allowed to change between the base period and current year but the quantity is held constant. B. the quantity of each item is allowed to change between the base period and current year but the price is held constant. C. both the price and quantity of each item is allowed to change between the base period and current year. D. neither price nor quantity of each item is allowed to change between the base period and current year.