If an increase in the supply of a product results in a decrease in the price, but no change in the actual quantity of the product exchanged, then the:
A. price elasticity of supply is infinite.
B. price elasticity of demand is zero.
C. price elasticity of demand is unitary.
D. price elasticity of supply is zero.
Answer: B
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Refer to the following graph. When the price falls from $10 to $8, demand
a. is most elastic if the demand curve is D2.
b. is most elastic if the demand curve is D.
c. is most elastic if the demand curve is D1.
d. is most inelastic if the demand curve is D.
When the president says that "High inflation rates are a much more serious economic problem than high unemployment rates," it is an example of
A) a normative statement. B) an empirically proven fact. C) a positive statement. D) an irrational argument.
The fallacy of composition is the incorrect view that what is true for ______.
a. the group is always true for the individual. b. the individual is always true for the group c. three people will remain true when another person joins the group. d. a small group will remain true for a larger group
A method of measuring the money supply by looking at money as a medium of exchange is the
A. liquidity approach. B. transactions approach. C. fiduciary monetary system. D. capital control.