A perfectly elastic demand curve
a. Is a horizontal line parallel to the x axis
b. Has an elasticity of demand between 0 and 1
c. Is the demand curve of a product that usually has no substitutes
d. None of the above
a
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The demand for dollars will increase in foreign-exchange markets if:
A. U.S. interest rates are high relative to those overseas. B. the U.S. is perceived to be a riskier place for investment relative to other nations. C. foreigners want to buy less U.S. goods. D. US consumers decide to buy more foreign goods than before.
All else constant, if butter and margarine are substitute goods, then as the price of butter rises,
a. the demand for margarine will fall b. the quantity of butter demanded will fall c. the demand for butter will fall d. the demand for butter will rise e. butter and margarine will become complementary goods, provided that butter is a normal good
Supply shift to the right=
What will be an ideal response?
In a progressive income tax system
A. the average tax rate exceeds the marginal tax rate. B. the marginal tax rate exceeds the average tax rate. C. the tax rate depends solely on how long an individual has been in the labor force. D. high income earners pay a lower percentage of their income in taxes than do low income earners.