Which of these events would be most likely to permanently shift an individual's demand curve for umbrellas to the right?
(A) He moves from a desert community to a rainy city by the ocean.
(B) Weather forecasters predict that a major hurricane will hit his city the coming week.
(C) The price of umbrellas decreases significantly as inexpensive umbrellas are imported from China.
(D) He buys a car, so he no longer needs to walk to and wait at a bus stop every morning to get to work.
Ans: (A) He moves from a desert community to a rainy city by the ocean.
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Physical currency is ________ popular than e-cash, ________
A) less; and both are portable and recognizable B) more; and both are portable and recognizable C) more; but only physical currency is portable and recognizable D) more; and both are portable, untraceable and anonymous E) less; but both are portable, untraceable and anonymous
Suppose a Treasury bond will mature in 4 years. If the bond pays a coupon of $425 per year and will make a final par value payment of $10,000 at maturity, what is its price if the relevant market interest rate is 4%?
What will be an ideal response?
To prevent obesity, the government may establish a tax on high caloric foods, such as twinkies. A twinkie tax will have the smallest impact on quantity demanded when the demand curve for twinkies is
A) perfectly elastic. B) perfectly inelastic. C) more elastic than the supply curve. D) both A and B.
Assume Claudia's budget constraint is demonstrated by line A in the graph shown. Which of the following would cause Claudia's budget constraint to shift to line C?
A. The price of movie tickets dropped. B. Claudia's preferences for these two goods decreased. C. The price of books dropped. D. Claudia's income decreased.