As the price of land decreases along its demand curve, the relative price of land
a. increases because the prices of other resources have also decreased.
b. decreases because the prices of other resources have also decreased.
c. increases because the prices of other resources have increased.
d. decreases because the prices of other resources are held constant.
e. remains constant because the prices of other resources also increase.
D
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Required reserves are the portion of deposits banks are required to hold and not lend to customers
Indicate whether the statement is true or false
Suppose Kate's Great Crete (KGC) has annual variable costs of VC = 30Q + 0.0025Q2 and marginal costs of MC = 30 + 0.005Q, where Q is the number of cubic yards of concrete it produces per year. In addition, it has an avoidable fixed cost of $50,000 per year. KGC's demand function is Qd = 20,000 - 400P. What is the profit maximizing sales price?
A. $47.70 B. $30.00 C. $45.00 D. $50.00
The above figure shows the market demand curve for telecommunication while driving one's car (time spent on the car phone). The current price is 35ยข per minute. If the price were to increase by ten cents per minute, consumer surplus would
A) fall to $820. B) fall by $84. C) fall by $58. D) fall to $369.
If the Fed buys $10 million dollars in government securities, and the required reserve ratio is 20 percent, the banking system is able to expand the money supply by:
A. $10 million. B. $50 million. C. $2 million. D. $40 million.