Juanita goes to the Hardware Emporium to buy a new circular saw. She is willing to pay $120 for a new saw, but buys one on sale for $85. Juanita's consumer surplus from the purchase is
A) $35. B) $85. C) $120. D) $205.
A
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If the real interest rate were above the equilibrium rate, there would be a shortage of loanable funds
a. True b. False Indicate whether the statement is true or false
What effect would an exodus of sellers for a product have?
a. It would cause the product’s price to decrease. b. It would cause the supply of the product’s complement in production to increase. c. It would shift the product’s supply curve to the left. d. It would shift the price of the product along the same supply curve.
Describe the difference between positive and negative incentives. Give an example of each.
What will be an ideal response?
In response to the financial crisis which followed the housing bubble collapse, policy-makers feared stimulating demand would cause:
A. hyperinflation. B. deflation. C. inflation. D. stagflation.