The demand for salt is probably more inelastic at generally prevailing prices than the demand for potatoes because
A) potatoes require salt but salt does not require potatoes.
B) salt has long been a favorite target for taxation.
C) salt is cheap relative to most users' incomes and has few good substitutes.
D) salt will keep longer than potatoes before spoiling.
E) there is so much potential salt in the ocean.
C
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Assuming all else equal, if a bank expects a bank run in the future:
A) there will be an upward movement along its demand curve for reserves. B) its demand curve for reserves will shift to the left. C) there will be a downward movement along its demand curve for reserves. D) its demand curve for reserves will shift to the right.
Which of the following shifts the supply curve rightward?
A) an increase in the population B) a positive change in preferences for the good C) a decrease in the price of the good D) a decrease in the price of a factor of production used to produce the good
What type of economic policy did Mexico follow from the end of World War II until the 1980s? Describe the three-stage strategy that supporters of this policy emphasized. What was the outcome of these policies for Mexico's manufacturing sector?
What will be an ideal response?
If a teacher tells a student that those who attend the study session typically score higher on the final exam,
A) the student has a positive incentive to attend the study session because she may get a higher grade. B) the student has a negative incentive to attend the study session because she will be punished if she does not go. C) the student has no greater incentive to attend because there is no guarantee she will get a higher grade on the exam. D) a "C" student will be making an irrational decision if she decides to skip the study session since she has plenty of time to go.