In the Keynesian model when desired investment exceeds desired saving,
A) inventories rise.
B) inventories fall.
C) the price level rises.
D) the price level falls.
B
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After a nation starts importing a good from overseas, the domestic price of the good
A) stays the same. B) rises. C) falls. D) might change, but more information about what the country exports is needed to determine if the price rises, falls, or does not change. E) might change, but more information about what else the country imports is needed to determine if the price rises, falls, or does not change.
Electric car enthusiasts want to buy more electric cars at a lower price. All of the following events would have this effect except
A) an increase in the number of manufacturers of electric cars. B) technological advancement in the production of electric car batteries. C) a decrease in the price of lithium, which is used in the electric car batteries. D) an increase in the price of gasoline.
Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. If Alice produces 5,000 cubic yards per year, what is Kate's inverse demand function?
A. P = 75 - 0.005QK B. P = 75 - 0.005QA C. P = 150 - 0.005QK D. P = 175 - 0.005QA
Explain the three possible ranges for price elasticity of demand
What will be an ideal response?