A decrease in supply will increase prices least when demand is
A. perfectly inelastic.
B. unit elastic.
C. elastic.
D. inelastic (but not perfectly inelastic).
Answer: C
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Because individuals can move from one government jurisdiction to another, _____
a. governments tend to cooperate with one another b. governments tend to look alike c. governments tend to merge into larger governments d. governments tend to give constituents what they want
Figure 10-8
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For the perfectly competitive firm in Figure 10-8, what is the long-run price and quantity?
A. P = 4, Q = 150 B. P = 9, Q = 200 C. P = 10, Q = 200 D. P = 5, Q = 150
The problem of moral hazard is a problem of hidden action
a. True b. False Indicate whether the statement is true or false
According to the permanent income hypothesis, taxpayers react to a one-time tax rebate
A. by spending more than the amount of the tax rebate. B. by saving all of the tax rebate. C. by spending all of the tax rebate. D. by saving half of the tax rebate and spending the rest.