In an opera house, the price of box seats increases from $100 to $120 per seat. However, the number of box seats is fixed. This is an example of ______.
a. perfectly elastic supply
b. elastic supply
c. perfectly inelastic supply
d. inelastic supply
c. perfectly inelastic supply
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A higher saving rate will promote capital deepening
Indicate whether the statement is true or false
Suppose a presidential candidate makes a statement in a debate whereby he promises that he would encourage the Fed to permanently lower the unemployment rate to 3%
His opponent claims that this type of policy idea is mired in the 1960s and would only cause inflation. Explain what the opponent means.
The demand for labor is a derived demand. Employers hire workers until the
A. wage rate equals the average product of labor. B. wage rate equals the marginal revenue product of labor. C. last worker hired adds nothing to total output. D. average product of labor is zero.
Refer to the accompanying figure. Suppose the solid line shows the current demand for coffee. In response to a news story explaining that coffee causes heart disease, you should expect:
A. neither a change in quantity demanded nor a shift in demand. B. the demand curve to shift to D(B) in anticipation of higher future prices. C. the demand curve to shift to D(A) because some people will stop drinking coffee. D. the quantity of coffee demanded to decrease, but no shift in the demand curve.