If an increase in the supply of a product in the market results in a decrease in price, but no change in the quantity traded, then
What will be an ideal response?
the price elasticity of demand is zero.
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According to this Application, how will an increase in government spending on entitlement programs affect the macroeconomy?
A) It will increase aggregate demand. B) It will increase aggregate supply. C) It will decrease aggregate demand. D) It will decrease aggregate supply.
Comparing the short-run Phillips curve and the long-run Phillips curve, we see that there is
A) no relationship between the two curves. B) no tradeoff in either curve. C) a tradeoff in both curves. D) only a long-run tradeoff between inflation and unemployment but not a short-run tradeoff. E) only a short-run tradeoff between inflation and unemployment but not a long-run tradeoff.
Assume that excessive lobbying by tea cultivators led to the announcement of a price floor higher than the equilibrium price of tea. This legislation is likely to result in a shortage of tea leaves in the market
Indicate whether the statement is true or false
Suppose that R. J. Reynolds raises the price of cigarettes by 10 percent. Although they have no requirement or agreement to do so, the other cigarette firms decide to raise their prices accordingly. This situation is best described as:
A. price leadership. B. a cartel. C. monopolistic competition. D. a market with kinked demand.