If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices.
B. lower level of output and prices.
C. higher level of output and prices.
D. lower level of output at higher prices.
Answer: A
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A price discriminating firm will tend to charge a ________ price for the category of customer with the ________ elasticity of demand
A) higher; higher B) higher; lower C) lower; lower D) 100 percent markup; infinite
When the price of a good rises, consumers buy a smaller quantity because of the ________ effect and the ________ effect
A) substitute; complement B) substitution; income C) normal; inferior D) supply; demand
If foreign holdings of U.S. dollars increase, holding all else constant
A) the balance on the U.S. financial account will increase. B) the balance on the U.S. current account will increase. C) the U.S. balance of trade will increase. D) the balance on the U.S. capital account will increase.
Demand shows
a. the various quantities people are willing and able to buy at various prices, ceteris paribus. b. the various quantities people are able and willing to buy at various prices. c. the various prices people face when buying. d. how much people buy at one specific price.