Explain why the price elasticity of demand changes along a linear demand curve
What will be an ideal response?
The price elasticity of demand depends on BOTH the slope of the demand curve and on the term P/Q which changes as you move along the demand curve.
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The type of labor agreement that requires workers to be union members prior to being considered for employment is a
A) right-to-work agreement. B) closed-shop agreement. C) union shop agreement. D) open-shop agreement.
The government might increase its spending to end a recession because:
A. allowing the short-run aggregate supply to adjust since back to the long-run can take a long time. B. the economy experiences lower prices at the long-run equilibrium. C. the economy enjoys a higher level of output in the long run. D. None of these justify why the government might change its spending to end a recession.
By purchasing large amounts of mortgage-backed securities (MBS) in 2009, the Federal Reserve's goal was to
a. raise the price of MBS and raise their yields. b. raise the price of MBS and lower their yields. c. lower the price of MBS and raise their yields. d. lower the price of MBS and lower their yields.
Which of the following accurately represents income earned by all factors of production?
A. national income B. disposable personal income C. personal income D. wages and salaries