If at a given moment, no matter what the price, producers cannot change the quantity supplied, the momentary supply
A) has zero elasticity.
B) has unit elasticity.
C) has infinite elasticity.
D) does not exist.
A
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As long as both current and future consumption are normal goods, a decrease in the interest rate will result in a drop in savings.
Answer the following statement true (T) or false (F)
In a nation's balance of payments, the current account includes
A) the changes in the official reserve transaction account. B) the purchases of foreign assets. C) the balance of the trade account, the balance of the services account, and net unilateral transfers. D) all of the above.
Suppose an economist found that total revenues increase for the bus system when fares were raised, the conclusion is that the price elasticity demand for subway services over the range of fare increase is inelastic
a. True b. False Indicate whether the statement is true or false
The ______ arises when a price changes because consumers have an incentive to consume less of the good with a relatively higher price and more of the good with a relatively lower price.
a. income effect b. substitution effect c. backward-bending supply curve d. preferences effect