Other things equal, which of the following goods would have the most inelastic price elasticity of demand?
A. All red t-shirt sold in the U.S.
B. A red t-shirt from Macy's (a large department store).
C. A t-shirt from The Gap (a famous American retail store).
D. All shirts, of any color, sold in the U.S.
Answer: D
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Refer to Figure 24-3. Suppose the economy is at point C. If investment spending decreases in the economy, where will the eventual long-run equilibrium be?
A) A B) B C) C D) D
"As we consume increasing amounts of a good or service, we derive diminishing utility from each additional unit consumed" defines ______________________.
Fill in the blank(s) with the appropriate word(s).
A monetary offset occurs when:
A. the central bank responds to expansionary fiscal policy with contractionary monetary policy. B. the central bank responds to expansionary fiscal policy with expansionary monetary policy. C. the central bank responds to contractionary monetary policy with contractionary fiscal policy. D. the central bank responds to expansionary monetary policy with contractionary fiscal policy.
When someone is both poor and old, they are on
A. Medicare only. B. Medicaid only. C. a separate program called "Eldercaid." D. both Medicare and Medicaid.