Which of the following statements is correct?
a. Advocates for drug-interdiction policies that reduce the supply of illegal drugs argue that the demand for illegal drugs may be more responsive in the long run than in the short run.
b. The demand for illegal drugs is price inelastic.
c. Drug interdiction efforts that reduce the supply of illegal drugs may increase drug-related crimes.
d. All of the above are correct.
d
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Refer to the scenario above. If Aqua Inc charges a price of $70 for each unit of Good A while Blu Corp . charges a price of $50, Blu Corp . will face a demand of ________ units
A) 1,000 B) 1,500 C) 2,000 D) 3,000
The market supply curve shows the
A) minimum price suppliers must receive in order to produce another unit of the good. B) maximum price suppliers must receive in order to produce another unit of the good. C) amount of producer surplus suppliers receive. D) profit that suppliers receive from producing another unit of the good.
Given an aggregate supply curve, a decrease in aggregate demand will: a. increase the real interest rate
b. increase real GDP. c. increase the price level. d. decrease the real exchange rate. e. decrease real GDP.
Which of the following will cause consumption, and as a result, aggregate demand, to shift to the right?
a. an optimistic business forecast of future income growth b. increased consumer wealth c. an increase in consumer confidence d. all of the above