When would it be plausible to describe the demand for a product by drawing a straight line, Q = a - bP?
A. Only if no important factors other than price affect demand
B. In the vast majority of scenarios
C. Practically never
D. If we believe that factors other than price alone determine demand
A. Only if no important factors other than price affect demand
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Net benefits of an alternative equal:
A) benefits minus costs. B) benefits divided by costs. C) the sum of benefits and costs. D) the product of benefits and costs.
Discount rates are __________ every two weeks by the directors of each regional Federal Reserve Bank but are __________ by the Board of Governors
A) determined; established B) established; determined C) recommended; established D) determined; recommended
One way to remove the excess labor supply problem from a minimum wage policy is to have the government hire all unemployed workers at the minimum wage. What is the key drawback of this version of a minimum wage policy?
A) The deadweight loss may increase substantially. B) The cost to the government may be very large. C) Consumer surplus losses increase further. D) A and B are correct. E) B and C are correct..
Even when two goods are perfect substitutes one can sell at a premium over the other depending on the tastes and preferences of the consumers
Indicate whether the statement is true or false