The figure above shows Ilene's budget line. If the price of a can of cat food rises, her budget line rotates so that the vertical intercept is
A) unchanged, but the horizontal intercept is closer to the origin.
B) unchanged, but the horizontal intercept is farther away from the origin.
C) farther away from the origin, but the horizontal intercept is closer to the origin.
D) closer to the origin, but the horizontal intercept is farther away from the origin.
A
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Market clearing prices can be volatile in a market with inelastic demand and inelastic supply
Indicate whether the statement is true or false
A perpetuity for sale at $100,000 that promises a yearly payment of $5,000 has an effective yield of
A) 2%. B) 5%. C) 20%. D) 50%. E) 2,000%.
Which of the following is NOT a characteristic of the demand curve faced by a firm in a monopolistically competitive market?
A) The demand curve is downward sloping. B) The slope of the demand curve is negative. C) The firm will produce where the demand curve is inelastic. D) The firm will produce where the demand curve is elastic.
As the price of a resource (e.g., labor) decreases,
a. demand for that resource increases b. the quantity demanded of that resource decreases c. the supply of that resource increases d. producers are more willing and able to hire that resource e. producers are less willing and able to hire that resource