Because of the law of supply, the supply curve for a good is Question 24 options:
A. perfectly horizontal.
B. backward bending, with a positive slope at low prices and a negative slope at high prices.
C. perfectly vertical.
D. downward sloping.
E. upward sloping.
E. upward sloping.
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When looking at this graph for the welfare effects of a price ceiling, the loss to producers created by the price ceiling is ______.
a. area d + e
b. everything below the supply curve
c. everything above the demand curve
d. area c + e
In which country is the central bank more independent than the Federal Reserve?
A) Germany B) Japan C) Great Britain D) All of the above.
According to the classical economists, if there is a recession, the government should ________.
Fill in the blank(s) with the appropriate word(s).
Suppose that if poor households have a price elasticity of demand for medical care of 0.70 and wealthy households have a price elasticity of demand for medical care of 0.10, then a 10% increase in the price of medical care would lead to poor households reducing their quantity demanded for medical care by:
A. seven times the amount that wealthy household reduce their quantity demanded for medical care. B. one-seventh the amount that wealthy households reduce their quantity demanded for medical care. C. one-tenth the amount that wealthy households reduce their quantity demanded for medical care. D. ten times the amount that wealthy household reduce their quantity demanded for medical care.