According to the market data for good X in the above table, a stable equilibrium price is established at
A) $2.
B) $4.
C) $6.
D) $8.
B
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Which of the following generalizations is correct? Demand tends to be
A. relatively more inelastic for a product considered a necessity. B. relatively more inelastic when more substitutes are available for a product. C. relatively more inelastic the more time consumers have to respond to price changes. D. relatively more elastic when the price of a good or service, as a proportion of income, is smaller.
The table above shows the total utility from the two goods Freddy likes to consume. Suppose that Freddy has already eaten 5 bags of Fritos. If he consumes one more bag, his marginal utility will
A) equal 40. B) equal 35. C) equal 15. D) depend on the price of the extra bag.
Which combination of fiscal policy actions would be most contractionary for an economy experiencing severe demand-pull inflation?
a. Increase taxes and government spending b. Increase taxes and decrease government spending c. Decrease taxes and government spending d. Decrease taxes and increase government spending
Economic growth may understate changes in standards of living if
A. the growth is accompanied by increasing congestion. B. the types of jobs generated feelings of alienation. C. deflation is taking place. D. leisure time is also increasing.