If the demand for plastic surgery is price inelastic,
A. the percentage change in price is less than the percentage change in quantity.
B. then when more plastic surgery is performed, total expenditures on plastic surgery will decrease.
C. changes in price do not affect the number of operations.
D. both b and c
E. both a and b
Answer: B
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If the interest rate is below the equilibrium, which of the following occurs in this market?
a. excess supply b. excess quantity supplied c. excess demand d. excess quantity demanded
Economists assume that tastes and preferences of individuals are:
a. constantly in flux. b. determined by product prices. c. unchanged during one's life. d. given and are relatively stable.
Which of the following is not correct?
a. When a union is present in a labor market, wages are determined by the equilibrium of supply and demand. b. Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power. c. The process by which unions and firms agree on the terms of employment is called collective bargaining. d. Most workers in the U.S. economy are not members of a union.
Explain why the rate of return from investing in stocks is higher than from investing in bonds
What will be an ideal response?