Answer the following statements true (T) or false (F)
1. Probably the main characteristic of a demand curve is that it slopes upward from left to right.
2. Typically, the higher the price of a commodity, the greater the quantity supplied.
3. Price ceilings usually create surpluses since supply is increased.
4. Price floors can create surpluses if price floors are above market prices.
5. Price elasticity of demand is a measure of consumer responsiveness to a change in price.
1. FALSE
2. TRUE
3. FALSE
4. TRUE
5. TRUE
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Answer the following statements true (T) or false (F)
1. The quantity supplied is inversely related to price. 2. If demand and supply increase by the same amount, equilibrium price will rise. 3. If supply increases more than demand, equilibrium price will fall. 4. A change in demand occurs whenever consumers will purchase more because of a decrease in price. 5. An increase in demand tends to increase both the equilibrium price and the amount of a commodity exchanged.
For a perfect-price-discriminating monopoly, the marginal revenue curve
A) lies below the demand curve. B) is the demand curve. C) varies for each consumer. D) is the same as the monopolist's marginal revenue curve.
Explain why the U.S. money supply grew so rapidly in the 1970s
Movements along the consumption function are called
a. autonomous consumption. b. leakage consumption. c. induced consumption. d. injected consumption.