If the price rises and the total amount consumers spend on the good falls, then demand must be
A. perfectly inelastic.
B. elastic.
C. perfectly elastic.
D. inelastic.
Answer: B
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From 1970 to 2007 households held ________ because ________
A) less money relative to income; people began using credit cards less often B) less money relative to income; people began using credit cards more often C) more money relative to income; people began using credit cards less often D) less money relative to income; the price level began to rise E) more money relative to income; people began using credit cards more often
In the upward-sloping segment of the aggregate supply curve,
a. increases in output are linked to decreases in the price level. b. increasing prices drag down resource costs. c. producers can hire more workers without having to raise the wage rate. d. the economy can increase aggregate supply without prices going up. e. firms are willing to pay higher wages to get more labor.
If the government required car makers to install more costly and effective emission control devices on cars, it will lead to:
a. a higher price of cars and a larger quantity of cars sold. b. a higher price of cars and a smaller quantity of cars sold. c. a lower price of cars and a larger quantity of cars sold. d. a lower price of cars and a smaller quantity of cars sold.
Brett buys a new cell phone for $100. He receives consumer surplus of $80 from the purchase. How much does Brett value his cell phone?
A) $180 B) $100 C) $80 D) $20