Which statement below does not describe a demand curve that is unit elastic?
a. The percentage change in quantity demanded equals the percentage change in price.
b. An increase in price will not change total revenue.
c. The price elasticity of demand equals one.
d. A change in price will not change quantity demanded.
e. A decrease in price will not change total revenue.
D
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The removal in 1966 of the requirement that Catholics eat fish on Fridays was followed by a 12.5 percent fall in prices of fresh fish. From this it can be deduced that the
a. demand curve for fish shifted to the left. b. demand curve shifted to the right. c. supply curve shifted to the left. d. supply curve shifted to the right.
Assume that oranges and peaches can both be grown on the same type of land, a decrease in the price of peaches, other things being equal, will cause a(n):
A. upward movement along the supply curve for oranges. B. downward movement along the supply curve for oranges. C. rightward shift of the supply curve for oranges. D. leftward shift of the supply curve for oranges.
Answer the following questions true (T) or false (F)
1. If the Fed wishes to decrease the supply of money and credit, it may sell government securities, raise the discount rate, or lower required reserve ratios. 2. The Fed was founded in 1913 to serve as lender of last resort to bankers during bank runs and panics. 3. If the rate of growth in real GDP exceeds the rate of growth in the money supply, the quantity theory of money predicts a price deflation.
The price-leadership model is best applied when there are no dominant firms in a market.
Answer the following statement true (T) or false (F)