If demand is highly inelastic and supply shifts to the right, the equilibrium price will rise significantly while quantity will increase only slightly.
Answer the following statement true (T) or false (F)
False
A highly inelastic demand curve and a supply curve that shifts to the right will result in a significant decline in price while quantity increases only slightly.
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Use the following graph of the market for milk to answer the question below.
If 30 million gallons of milk are being produced, then we know marginal benefit
A. is less than marginal cost. B. and marginal cost do not depend on the quantity. C. is greater than marginal cost. D. equals marginal cost.
An increase in a budget deficit financed by borrowing can increase interest rates and reduce investment spending thereby creating lower rates of economic growth
a. True b. False Indicate whether the statement is true or false
Net exports
a. are equal to total exports minus total imports b. are always positive because total imports exceed total exports c. are always negative because total exports exceed total imports d. always exceed total exports e. include goods produced and sold abroad
Suppose the automobile industry can import 10% of the total quantity demanded of cars in the U.S. This is an example of a(n) ________.
A. trade limit B. quota C. import tax D. tariff