Which of the following statements is true?
a. If price decreases and demand is relatively elastic then the total expenditure by consumers will decrease.
b. If price increases and demand is relatively inelastic then the total expenditure by consumers will decrease.
c. Total expenditure by consumers is constant along a linear demand curve.
d. All of the above.
e. None of the above
Ans: e. None of the above
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Government savings, , is equal to
A) T - G. B) T + G. C) T = G. D) T + G - I. E) T - G = I.
If U.S. consumers increase their spending on hybrid cars by 60 percent, and 60 percent more hybrid cars are produced, this is known as the
A) majority rule. B) proportional rule. C) government rule. D) profit rule.
Why is information sometimes considered as a good?
If the MPC = 0.75 and a household obtains $50,000 more dollars then how much would the household spend of the additional $50,000?
A. $50,000 B. $12,500 C. $37,500 D. $40,000