In the 1960s and 1970s the U.S. passed several major consumer safety laws, including the Flammable Fabrics Act and the Child Protection Act. The economic impact of such legislation may include all of the following except:
a. reducing the price of the regulated product.
b. increasing the cost of producing the regulated product.
c. reducing the supply of the regulated product.
d. reducing competition within the regulated industry.
a. reducing the price of the regulated product.
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Real business cycle theory focuses on factors affecting
A. aggregate demand. B. the velocity of money. C. aggregate supply. D. consumer spending.
Explain why the number of substitutes influences the price elasticity of demand
What will be an ideal response?
Why is it that people who have to fly at a moment's notice often pay some of the highest air fares whereas people who wait until the last minute to buy a ticket to a live performance of play may be able to get a better price than someone who bought
their ticket months in advance.
If an indifference curve intersects the budget constraint at two points, then ________
A) the consumer would be equally happy at either of those two points B) optimal consumption is found by moving to a lower indifference curve C) optimal consumption is found by moving to a lower budget constraint D) the consumer will choose the point that minimizes consumption expenditure