Suppose the price P on a given demand curve results in a price elasticity of demand equal to 1. Any price higher than P will lie on the ________ part of the demand curve, and any price lower than P will lie on the ________ part of the demand curve.
A. inelastic; elastic
B. elastic; inelastic
C. unit elastic; inelastic
D. elastic; unit elastic
Answer: B
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The supply of money in the U.S. economy is determined primarily by
A) the demand for money in the economy. B) the actions of the Federal Reserve and the banking system. C) decisions made by the Federal Reserve and the U.S. Treasury. D) consumers and the banking system.
If A>B and B>C do not imply A>C, where > means "preferred to", then preferences are intransitive
Indicate whether the statement is true or false
In long-run equilibrium under perfect competition,
a. the firm and the industry will have the same cost curves. b. only a very few firms will be earning economic profits. c. the demand curves facing individual firms will fall to the level of minimum AC. d. individual firms will tend to increase their outputs.
Which of the following is the path through which contractionary monetary policy works?
A. Money down implies interest rate up implies investment up implies income down. B. Money down implies interest rate down implies investment up implies income down. C. Money down implies interest rate up implies investment down implies income down. D. Money down implies interest rate down implies investment down implies income down.