Every spring, motorists do more driving than during the winter months. Every spring, the price of gasoline increases and the motorists buy more gasoline. This experience suggests that the
A) "law of supply" does not always hold for necessities like gasoline.
B) "law of demand" does not always hold for necessities like gasoline.
C) laws of supply and demand are both contradicted for gasoline, though only during the spring driving season.
D) None of the above answers are correct.
D
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If the demand for a life-saving drug was perfectly inelastic and the price doubled, the quantity demanded would
A) also double. B) remain constant. C) decrease by 50%. D) be cut in half.
Economists object to monopolies on the grounds that monopolies:
a. can fix prices at levels that are too high. b. lack productive efficiency. c. lack allocative efficiency. d. can only exist hypothetically.
When wage rates rise the short-run aggregate supply curve shifts to the right
Indicate whether the statement is true or false
If the exchange rate between the yen and the dollar changes from 100 yen = $1 to 110 yen = $1, then:
A. the dollar has depreciated in value. B. U.S.-made goods will become less expensive to Japanese citizens. C. the dollar has appreciated in value. D. Japanese-made goods will become more expensive to U.S. citizens.