Consider two goods: gold jewelry and round-trip bus tickets to Urbana, Illinois. Which statement is most likely correct?
a. They are inferior goods.
b. Their demand curves are quite similar.
c. They are complementary goods.
d. They are substitute goods.
e. They are neither inferior, similar, substitutes, nor complements.
E
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A price control is:
A) a market determined equilibrium price. B) a non-market price imposition. C) the price at which quantity demanded equals quantity supplied. D) the price that maximizes social surplus.
Changes in the price level
A) do not affect the level of aggregate supply in the long run. B) increase the level of aggregate supply in the long run. C) decrease the level of aggregate supply in the long run. D) increase the level of aggregate supply in the long run only at very high levels of output.
The external costs of alcohol consumption are related to, among other things, death and injury related to auto accidents caused by drunk drivers. These costs have been estimated to be about 47 cents per ounce of alcohol consumed. Taxes on alcohol amount to 23 cents per ounce. This suggests that alcohol consumption is (i) greater than the efficient or optimal amount; (ii) should be reduced to zero
to eliminate the externality. a. i and ii b. i not ii c. ii not i d. neither i nor ii
Shift to the left or right for supply:price of product
What will be an ideal response?