In the case of perfectly inelastic demand, the demand curve is:
A. upward sloping.
B. downward sloping.
C. vertical.
D. horizontal.
Answer: C
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A decrease in the demand for a good generally implies that:
a. consumers are willing to buy larger quantities of the good at each price. b. the demand curve for the good has shifted to the right. c. consumers are willing to pay a higher price for each unit of the good. d. the demand curve for the good has become steeper. e. the demand curve for the good has shifted to the left.
The factor distribution of income:
A. shows how much income people get from labor compared to land and capital. B. refers to the pattern of income that people derive from different factors of production. C. hasn't changed substantially in the last century in the United States. D. All of these statements are true.
Milton Friedman believes that consumption spending depends on both permanent and transitory income
Indicate whether the statement is true or false
Which of the following would shift the investment demand curve rightward?
A. an increase in business taxes B. a tax credit for new investment C. firms move from full capacity to unused capacity D. interest rates decrease