If the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to:
a. rise and the equilibrium quantity to fall.
b. rise and the equilibrium quantity to stay the same.
c. rise and the equilibrium quantity to rise.
d. stay the same and the equilibrium quantity to fall.
b. rise and the equilibrium quantity to stay the same.
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The above table shows the daily production possibilities for a bakery. Currently the bakery bakes 60 pizzas and 180 loaves of bread, that is at alternative C. Using the above table, moving from alternative C to alternative B, what is the opportunity cost of one loaf of bread?
A. 2 pizza pies
B. 1 pizza pie
C. 0.5 pizza pie
D. 30 pizza pie
Suppose a U.S. government program subsidizes the production of domestic sugar producers and places a tariff (tax) on the importation of sugar from other countries. This program
What will be an ideal response?
"A reduction in gasoline prices caused the demand for gasoline to increase. The lower gas prices also led to an increase in demand for large cars, causing their prices to rise" This statement contains
What will be an ideal response?
Which of the following has made the greatest contribution to advances in productivity in recent years?
A. Spending on research and development. B. Improvement in management. C. Improvements in the quality of labor. D. Increases in capital per worker.