When the percentage change in the quantity demanded is less than the percentage change in price, then demand is
A) inelastic.
B) unit elastic.
C) elastic.
D) irrelevant.
E) undefined.
A
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When a government fines and/or imprisons convicted drug dealers, it is attempting to reduce the illegal drug trade by shifting the ________ curve for illegal drugs ________
A) demand; rightward B) demand; leftward C) supply; rightward D) supply; leftward
Suppose the Federal Reserve's short-run response to any change in the economy is to change the money supply to maintain the existing real interest rate
What would happen to money supply if there were a reduction in government purchases? Given the Fed's policy, what would happen in the very short run (before general equilibrium is restored) to output and the real interest rate? What must happen to the LM curve and the price level to restore general equilibrium?
Owners of small firms in countries with weak banking systems have to rely on funds from all of the following EXCEPT:
A) their own savings B) local lenders who charge high interest rates C) global investors D) the savings of relatives and friends
The managers of Movies Plus, a large movie theater, want to practice third-degree price discrimination. The managers have learned that college students have an own price elasticity of demand of 1.5 for tickets at Movies Plus and adults have an own price elasticity of 1.2. If the managers have correctly determined the third-degree profit-maximizing price for adults is $15, what is the third-degree
profit-maximizing price to charge students? A) $7.50 B) $8.50 C) $10.00 D) $13.50