Refer to the graph showing the supply of books. A shift from S1 to S0 would most likely occur for what reason?
A. An increase in the cost of producing books
B. A decrease in taxes levied on producers of books
C. An increase in the number of suppliers in the market
D. An increase in the price of books
Answer: A
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The government's policy of reducing payments for physicians' services has generated a relative
A) increase in the number of physicians in the program. B) reduction in the number of physicians in the program. C) reduction in the demand for medical services. D) increase in the income of the physicians remaining in the program.
The Consumer Price Index excludes all of the following, except one. Which one is included in the CPI?
a. Services purchased directly by consumers b. Raw materials c. Services purchased by the government d. Machinery purchased by firms e. Intermediate goods purchased by firms
If it is assumed that people vote for the candidate who comes closer to matching their own views, then
A) candidates will label themselves as right-wingers. B) candidates will label themselves as left-wingers. C) candidates will label their opponents as middle-of-the-roaders. D) candidates will discuss the means to accomplishing ends. E) a candidate who is trailing in the polls will modify his or her position to become more like his or her opponent.
Refer to the above graphs. A price increase from $20 to $40 causes quantity demanded to decrease from 100 units to 50 units. Which graph best illustrates the price elasticity of demand for this good?
A. Graph A
B. Graph B
C. Graph C
D. Graph D