If the quantity demanded of good x rises by 3% and, in response, your income goes up by 2%, the income elasticity of demand would be:
a. 1.5
b. 6
c. 3
d. .20
a
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If the exchange rate falls, the quantity of dollars supplied
A) increases, and there is movement up along the supply curve of dollars. B) increases, and there is movement down along the supply curve of dollars. C) decreases, and there is movement up along the supply curve of dollars. D) does not change. E) decreases, and there is movement down along the supply curve of dollars.
With all other inputs held fixed, the marginal product of any input must eventually increase as more of that input is hired. ?
Answer the following statement true (T) or false (F)
Suppose a hurricane causes a great deal of destruction in Florida. After the hurricane, it takes much longer than usual for the reconstruction to take place. A possible explanation for this is
A) greed by suppliers of construction materials increased. B) government prevented price gouging during the reconstruction period. C) prices of construction materials fell in the Midwest. D) environmental restrictions on lumbering in the Pacific Northwest were relaxed.
The demand curve for the product of a perfectly competitive firm's demand curve indicates that if the firm
A) lowers its price, it can sell more. B) accepts the market-set price, the number of units the firm can sell is limited. C) raises its price, sales will fall to zero. D) changes its price, the quantity demanded will change in the opposite direction.