The price elasticity of demand ________ in value when moving downward along a ________ line demand curve
A) falls; straight
B) rises; curved
C) falls, curved
D) rises; straight
A
You might also like to view...
One drawback in using fiscal policy as a stabilization tool is that fiscal policy:
A. is not useful for dealing with prolonged episodes of recession. B. effects are frequently offset by automatic stabilizers. C. affects potential output as well as aggregate expenditure. D. is too flexible to use to close output gaps.
By the year 2100, global warming may lead to
a. shifts in world rain patterns. b. disruption of agriculture. c. expanded deserts. d. coastal inundation. e. all of the above
A decrease in supply is caused by:
A) an increase in returns from other alternative activities. B) suppliers' expectations of lower prices in the future. C) an advancement in the technology for producing the good. D) a decrease in the price of a good using the same resources.
Assume that pencils and pens are substitutes. If the price of pencils rises ceteris paribus, then we will see
A. An increase in the demand for pens. B. A decrease in the demand for pens. C. A decrease in the supply of pens. D. An increase in the supply of pens.