Which of the following statement is true?
a. The demand for Cheerios is less elastic than the demand for cereal
b. The demand for gas is more elastic in the short-run than in the long-r
c. The demand for puma shoes is more elastic than the demand for shoes
d. Products with many complements have a more elastic demand
c
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Suppose that when the price of oranges is $3 per pound, the quantity demanded is 4.7 tons per day and the quantity supplied is 3.9 tons. In this case:
A. excess demand will lead the price of oranges to rise B. excess supply will lead the price of oranges to rise C. excess supply will lead the price of oranges to fall D. excess demand will lead the price of oranges to fall
Providers of health care insurance require applicants to provide information on their medical history. The purpose may be to minimize which of the following problems?
A) moral hazard B) adverse selection C) government taxes D) opportunity cost
If only two identical firms operate in a market, consumers prefer
A) a Cournot equilibrium. B) a Stackelberg equilibrium. C) a collusive equilibrium. D) any equilibrium since they all result in the same consumer surplus.
The short-run Phillips curve always intersects the long-run Phillips curve at: a. Zero inflation
b. At an accelerating inflation rate. c. The expected inflation rate. d. The same rate over time.