Suppose a consumer buy books and DVDs. The price of a book is $10, the price of a DVD is $20 and the consumer's income is $400. If books are measured on the vertical axis and DVDs are measured on the horizontal axis, then the budget line intersects the vertical axis at:
A. 40.
B. 20.
C. 10.
D. 400.
A. 40.
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In the above figure, if the firm is in monopolistic competition, its price will be
A) $1. B) $2. C) $3. D) $4.
A linear demand curve:
A. has a constant elasticity. B. will be more elastic when price is low and more inelastic when price is high. C. must be either perfectly inelastic or perfectly elastic. D. has a constant slope.
A change in weather patterns that makes farming more difficult would ____
a) decrease long-run aggregate supply. b) increase long-run aggregate supply. c) increase aggregate demand. d) have no impact on long-run aggregate supply.
The success of a strike depends on the union's ability to
a. do all of the following b. reduce the supply of labor to the firm c. reduce the supply of scabs to the firm d. remain unified e. endure the strike