If the quantity demanded of medical care is higher at a zero price than at some positive price, then it follows that the demand for those specific items that make up health care will be higher (than it would be if the quantity demanded of health care were lower)
Indicate whether the statement is true or false
True
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How is a duopoly model with homogeneous products similar to a prisoners' dilemma game?
What will be an ideal response?
If the final expressions in a present value equation used to calculate the price of a bond you are considering buying are "[$75 / (1 + .04)6] + [$2,500 / (1 + .04)6]", which of the following is correct?
A) The face value is $75, the interest rate you need is 1.04 percent, and the coupon will mature in 6 years. B) The face value is $2,500, the coupon is $75, and the coupon will mature in 4 years. C) The face value is $2,500, the interest rate you need is 6 percent, and the coupon will mature in 4 years. D) The coupon is $75, the interest rate you need is 4 percent, and the coupon will mature in 6 years.
If a normal good has a price elasticity of demand equal to 4, then:
a. a 1 percent increase in its price will increase quantity demanded by 4 percent. b. a 1 percent increase in its price will decrease quantity demanded by 4 percent. c. a 1 percent increase in its price will increase quantity demanded by 0.25 percent. d. a 1 percent increase in its price will decrease quantity demanded by 0.25 percent.
The banking system creates additional money by making loans equal to total reserves.
Answer the following statement true (T) or false (F)