When a tax is placed on the buyers of tennis racquets, the size of the tennis racquet market
a. and the price paid by buyers both decrease.
b. decreases, but the price paid by buyers increases.
c. increases, but the price paid by buyers decreases.
d. and the price paid by buyers both increase.
b
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What is the effect on aggregate demand and the AD curve from either an increase in government expenditure or a cut in taxes?
What will be an ideal response?
Refer to Scenario 2. What is the estimated regression equation for determining the market value of houses?
What will be an ideal response?
Using the indifference curve model, a demand for X curve is derived by allowing:
A. the price of Y to change and holding the price of X and income constant. B. income to change and holding the price of X and the price of Y constant. C. the price of X and the price of Y to change and holding income constant. D. the price of X to change and holding the price of Y and income constant.
If a 20 percent increase in the price of a good results in a 60 percent increase in the demand for another good, what is the cross-price elasticity of demand?
a. +3 b. –3 c. +80 d. –40