Suppose that the U.S. exchange rate is expected to fall in the future. As a result, in the foreign exchange market, there will be
A) an increase in the demand for dollars, a decrease in the supply of dollars, and a rise in the equilibrium exchange rate.
B) an increase in the demand for dollars, a decrease in the supply of dollars, and a fall in the equilibrium exchange rate.
C) a decrease in the demand for dollars, an increase in the supply of dollars, and a rise in the equilibrium exchange rate.
D) a decrease in the demand for dollars, an increase in the supply of dollars, and a fall in the equilibrium exchange rate.
D
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Consider the following:
(i) Suppose labor and capital are complements in production. Explain why a firm's long-run demand for labor is more elastic than its short-run demand. (ii) Suppose labor and capital are substitutes in production. Will the firm's long-run demand for labor still be more elastic than its short-run demand? Why or why not?
Barbers give a price discount to kids. According to price discrimination, if barbers use price discrimination, this implies demand for hair cuts by kids is more elastic
a. True b. False
Which of the following is a characteristic of a monopoly market? a. A large number of buyers and sellers. b. Mutual interdependence
c. Free entry and exit. d. A product with no close substitutes.
In economics, the term marginal refers to:
A. the change or difference from a current situation. B. man-made resources as opposed to natural resources. C. the satisfaction a consumer receives from a good. D. holding everything else constant in the analysis.