Gasoline prices increase by 50 percent and other things remain the same. As a result, there is
A) an increase in the demand for gasoline.
B) a decrease in the demand for gasoline.
C) no change in the quantity of gasoline demanded.
D) a decrease in the quantity of gasoline demanded.
E) More information is needed to determine if the demand for gasoline increases or decreases.
D
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If individuals are holding more money than they desire
A) they will attempt to reduce their liquidity by using money to purchase goods. B) they will attempt to reduce their liquidity by using money to purchase interest-bearing assets. C) they will attempt to reduce their liquidity by converting real money holdings into nominal money holdings. D) they will keep their holdings constant.
The demand for most agricultural products tends to be
a. both price and income elastic b. both price and income inelastic c. price inelastic and income elastic d. price elastic and income inelastic e. unit elastic in terms of price elasticity and income elastic
If the exchange rate changes from 1 euro per U.S. dollar to 1.2 euros per U.S. dollar, the Euro has
a. appreciated, since its value has increased. b. appreciated, since the price of U.S. dollars has increased. c. appreciated, making U.S. goods cheaper in Euros. d. depreciated, since its value has declined. e. depreciated, since its value has increased.
The prices producers charge to cover the cost of supply may be seen on a:
a. television economic update b. trade journal c. index table of interest rates d. supply curve