If 100 shirts are sold when unit price is $10, while 75 shirts are sold when the unit price is $15, one can conclude that in this price range:
A. Demand for the shirts is elastic
B. Demand for the shirts is inelastic
C. Demand for the shirts has shifted to the right
D. Consumers are quite sensitive to changes in the price of the shirt
B. Demand for the shirts is inelastic
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Refer to Figure 24-1. Ceteris paribus, an increase in the value of the domestic currency relative to foreign currencies would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Which of the following statements about marginal utility is correct?
a. When marginal utility is negative, an increase in the quantity will increase total utility. b. When marginal utility is decreasing, an increase in quantity will decrease total utility. c. When marginal utility is positive, an increase in quantity will decrease total utility. d. When marginal utility is zero, an increase in quantity will leave total utility unchanged. e. When total utility is increasing, marginal utility will be negative.
What is the most likely effect when the price level in the United States decreases relative to the price level in other countries, ceteris paribus?
a. U.S. consumers will buy more foreign goods and services, decreasing the quantity of real GDP demanded. b. Foreign consumers will buy fewer U.S. goods and services, increasing U.S. exports. c. U.S. and foreign consumers will buy more U.S. goods and services, increasing the quantity of real GDP demanded. d. U.S. and foreign consumers will buy fewer U.S. goods and services, increasing U.S. exports.
Monetarists and classical economists:
A. assume that stimulative monetary policy will create high levels of GDP without inflation. B. assume that stimulative monetary policy will create high levels of GDP and slightly high prices. C. assume the economy operates at full employment and stimulative monetary policy will only cause the price level to rise. D. assume that the economy operates at full employment and stimulative monetary policy will increase both aggregate supply and aggregate demand.