An increase in the income of bus riders, accompanied by a simultaneous increase in the wages of the bus drivers causes, the price for bus rides(an inferior good) _____________ and the quantity demanded for bus rides ____________
a. Decreases; decreases
b. Increase; increases
c. Uncertain, Decreases
d. Uncertain, Increases
c
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which of the following is the incorrect statement
a. during a period of inflation, prices are always rising b. when inflation is decreasing, prices are always falling c. if the inflation is constant, prices are neither rising or falling d. a and b are incorrect e. b and c are incorrect
Borrowers can (and sometimes do) default on their loans when
a. the dividend yield on their shares of stock reaches zero. b. they convert their bonds into perpetuities. c. they declare bankruptcy. d. they cannot find enough buyers of their bonds to sell all the bonds they wish to sell.
In Figure 4.1, the demand curve that is perfectly inelastic is on graph:
A. A. B. B. C. C. D. D.
The price of a good that Joe is currently consuming has increased
A) Joe has experienced a decrease in purchasing power. B) Joe will experience a shift in the demand curve of the good whose price has increased. C) Joe will stop consuming this good. D) Joe will experience increasing marginal utility.