Refer to the diagrams in which figures (a) and (b) show demand curves reflecting the prices Alvin and Elmer are willing to pay for a public good, rather than do without it. The collective willingness to pay for the first unit of this public good is:
A. $18.
B. $14.
C. $10.
D. $6.
A. $18.
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Indicate whether the statement is true or false
Which of the following most resembles a perfectly competitive market?
A. The stock market B. The publishing industry C. The steel industry D. The new car market
If the Consumer Price Index (CPI) decreases from 100 to 50 and the nominal wage decreases from $200 to $50, what is the change in the real wage in terms of the beginning year's dollars?
a. +$200 b. -$100 c. +$50 d. -$200 e. +$250
As a result of a decline in interest rates and a rise in household income, the demand curve for housing has shifted to the right, but has retained the same slope. Consequently, the elasticity of demand for housing
a. has declined. b. has increased. c. has remained unchanged. d. cannot be compared.