"A doubling of the price of gasoline in the 1970s did not reduce consumption one iota." The person making the above claim evidently thinks the demand for gasoline is
A) completely elastic.
B) completely inelastic.
C) greater than the supply.
D) less than the supply.
E) unit elastic.
B
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If a union successfully negotiates for higher wages and benefits for airline pilots, what impact would this have on supply and demand in the market for passenger airline travel, assuming no other changes take place in the market?
What will be an ideal response?
Betsy graduates from college, where she earned $3,000 a year working part-time, and takes a job as a third grade teacher, where she now earns $30,000 per year. About the same time she received her first paycheck, her bicycle was stolen. With her old income she would have purchased a new bike but with her new income she purchased a new car. Therefore,
a. bicycles are a normal good for Betsy b. automobiles are an inferior good for Betsy c. automobiles are a normal good for Betsy d. Betsy's supply curve for automobiles is upward-sloping e. bicycles and automobiles are complementary goods for Betsy
The ratio of government debt to GDP since 1940 indicates that the U.S. has mostly been:
a. a net creditor by at least 20% of the value it produces each year. b. a net creditor by at least 10% of the value it produces each year. c. a net borrower by at least 20% of the value it produces each year. d. a net borrower by at least 40% of the value it produces each year.
Suppose you see a 2006 Scion xB Sport Wagon advertised in the local newspaper for $4,500. If you knew the car was reliable, you would be willing to pay $6,000 for it. If you knew the car was unreliable, you would only be willing to pay $2,500 for it
Under what circumstances should you buy the car at the asking price? What will be an ideal response?