As we move down a straight-line demand curve, the price elasticity becomes
a. larger.
b. smaller.
c. larger, then smaller.
d. smaller, then larger.
b
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Consider two industries, industry W and industry X. In industry W there are five companies, each with a market share of 20% of total sales. In industry X, there are six companies
One company has a 50% market share and each of the other five firms has a market share of 10%. a. Calculate the four-firm concentration ratio for each industry. b. Calculate the Herfindahl-Hirschman Index (HHI) for each industry. c. What do the values of the two concentration measures imply about the degree of market power in the two industries? Figure 15-18
Which of the following is responsible for controlling the money supply?
A) the Congress B) the Supreme Court C) the Federal Reserve D) the president
When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
If the equilibrium price of a good decreases and the equilibrium quantity of the good decreases, we can conclude that:
A. demand increased. B. demand decreased. C. supply increased. D. supply decreased.