Demand functions are "homogeneous of degree zero in all prices and income.". This means
a. a proportional increase in all prices and income will leave quantities demanded unchanged.
b. a doubling of all prices will not alter consumption decisions.
c. prices directly enter individuals' utility functions.
d. an increase in income will cause all quantities demanded to increase proportionately.
a
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When a government imposes penalties on both sellers and buyers of an illegal good, the price of the good ________ and the quantity ________
A) falls; decreases B) falls; might increase, decrease, or not change C) rises; might increase, decrease, or not change D) might rise, fall, or not change; decreases
If Tattling Tina threatens to tell, what would Bratty Brenda's best response be?
a. Hit b. Not hit c. Run d. Hide
If the ice cream industry is a competitive price-taker market and all ice cream producers are earning zero economic profit, what will be the impact of an increase in the demand for ice cream?
a. Firms will exit the ice cream industry in the long run since they are earning zero economic profit. b. The firms will now be able to earn long-run economic profit assuming that barriers to entry remain low and new firms can enter the market. c. A shortage of ice cream will develop. d. The price of ice cream will rise initially, inducing the existing firms to expand output and new firms to enter the industry.
Describe the origins of the Fed and the arguments about the independence of the Fed.
What will be an ideal response?