Which of the following examples would most likely have elastic demand?
a. cigars for a chain smoker
b. crackers for a person who likes to snack
c. cocaine for an addict
d. medicine for a person with blood clots
b. crackers for a person who likes to snack
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Recently a teachers' union argued that the standard of living of teachers working for the school district was falling. The negotiating team for the school board replied that this was not true because the teachers had received significant increases in nominal income through collective bargaining. Could the union statement be correct?
A. Yes, because real income may fall if price increases are proportionately smaller than the increases in nominal income. B. No, because real income may rise if price increases are proportionately greater than declines in nominal income. C. Yes, because real income may fall if price increases are proportionately greater than the increases in nominal income. D. No, because real income may rise if price increases are proportionately greater than the increases in nominal income.
Suppose two neighborhoods with 10 homes each in Buffalo, New York are identical except one of them is near a toxic waste dum
A) $400,000. B) $1,300,000. C) $900,000. D) $500,000. E) $90,000.
In the simple accelerator model, if expected output declines,
A) gross investment becomes negative. B) net investment becomes negative. C) both gross investment and net investment become negative. D) the desired stock of capital will become negative.
Negative externalities lead markets to produce
a. greater than efficient output levels and positive externalities lead markets to produce smaller than efficient output levels. b. smaller than efficient output levels and positive externalities lead markets to produce greater than efficient output levels. c. greater than efficient output levels and positive externalities lead markets to produce efficient output levels. d. efficient output levels and positive externalities lead markets to produce greater than efficient output levels.