The price of milk rises, so the supply of ice cream decreases. there is, as a result a 5 percent increase in the price of ice cream and a 3 percent decrease in the quantity of ice cream sold
The revenue received by ice cream suppliers will ________ because the demand for ice cream is ________. A) decrease; price inelastic
B) increase; price inelastic
C) increase; price elastic
D) decrease; price elastic
B
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The above figure shows the market for laptops. Which of the following shifts the supply curve from S0 to S1?
A) an increase in the cost of hard drives B) a decrease in the price of laptops C) an increase in the number of laptop manufactures and sellers D) an increase in the price of laptops E) an increase in the productivity of the workers manufacturing laptops
The balance between maximizing a society's income and an equal distribution of that income is an illustration of a. scarcity
b. trade-offs. c. the forces of supply and demand. d. none of the above.
When Haley states that inflation by itself always reduces the real return on her saving, she
a. has expressed the idea of the inflation tax. b. has expressed the idea behind menu costs. c. has committed the inflation fallacy. d. has expressed the idea behind shoeleather costs.
Historically, when a diverse set of stocks is held over a lengthy time period, stocks have yielded a ______ rate of return and the variation in the rate of return has been _______.
A) low; high B) high; high C) high; low D) low; low