For an increase in demand, the price effect is smallest and the quantity effect is largest:
A. when supply is least elastic.
B. in the long run.
C. in the short run.
D. in the immediate market period.
Answer: B
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A price floor set above a market equilibrium price causes
A) a surplus. B) a shortage. C) producers to receive lower prices. D) consumers to pay lower prices.
Refer to the above figure. Which panel is consistent with the Fed selling bonds?
A) Panel A B) Panel B C) Panel C D) Panel D
If a country wants to promote future growth, it should
A) produce more capital goods today. B) produce more consumer goods today. C) produce only economic goods. D) produce only needed goods.
As a result of the decrease in donut prices at Real Yum Donuts, Dippin Donuts managers discover that the demand for their donuts has: a. increased
b. decreased. c. not changed. d. none of the above