Other things being equal, the increase in rents that occurs after rent controls are abolished is smaller when:
A.rented homes and owned homes are substitutes.
B. rented homes and owned homes are complements.
C. the own price elasticity of demand for rental homes is price inelastic.
D. the own price elasticity of demand for rental homes is price elastic.
E. the own price elasticity of demand for rental homes has unitary price elasticity.
D. the own price elasticity of demand for rental homes is price elastic.
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What is the profit maximizing rule for firms? (i.e. how do they decide what output to produce?) b. Explain why this approach will maximize profits for a firm.
When a government subsidizes the sale of milk, cooperative surplus ________ and society gets ________
A) increases; richer B) increases; poorer C) decreases; richer D) decreases; poorer
All of the following would stimulate economic growth EXCEPT
A) decreasing taxes on consumption (for instance, decreasing a sales taxes) and increasing income taxes. B) subsidizing basic research. C) decreasing tuition charges at state universities. D) encouraging international trade.
Finding a small value of the p-value (e.g. less than 5%)
A) indicates evidence in favor of the null hypothesis. B) implies that the t-statistic is less than 1.96. C) indicates evidence in against the null hypothesis. D) will only happen roughly one in twenty samples.