Elasticity of demand is closely related to the slope of the demand curve. The less responsive buyers are to a change in price, the
a. steeper the demand curve will be.
b. flatter the demand curve will be.
c. further to the right the demand curve will sit.
d. closer to the vertical axis the demand curve will sit.
a
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Deflation is a situation in which the:
A. prices of most goods and services are rising over time. B. quantity of goods and services produced is increasing over time. C. prices of most goods and services are falling over time. D. quantity of goods and services produced is decreasing over time.
List and explain the four key assumptions in the theory of public choice
What will be an ideal response?
If supply decreases and demand increases
A) the market clearing price definitely rises, and the equilibrium quantity falls. B) the market clearing price definitely rises, and the equilibrium quantity is indeterminate. C) the market clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate. D) the effect on the market clearing price is indeterminate, and the equilibrium quantity definitely falls.
In order for a price ceiling to "bind," it:
A. must be set below the equilibrium price, and will likely cause a surplus. B. must be set above the equilibrium price, and will likely cause a surplus. C. must be set above the equilibrium price, and will likely cause a shortage. D. must be set below the equilibrium price, and will likely cause a shortage.