As a result of a decline in interest rates and a rise in household income, the demand curve for housing has shifted to the right, but has retained the same slope. Consequently, the elasticity of demand for housing
a. has declined.
b. has increased.
c. has remained unchanged.
d. cannot be compared.
a
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Opportunity cost is the combined value of all of the other alternatives that go unselected.
Answer the following statement true (T) or false (F)
For deflation to occur,
A) national income must decrease. B) real GDP must decrease. C) the price level must decrease. D) nominal GDP must decrease.
The government's court case against Microsoft is an example of:
a. predatory pricing. b. antitrust enforcement. c. economic regulation. d. the regulatory dilemma.
Firms in a monopolistically competitive industry maximize profits by
a. equating total revenue and total cost b. treating price as given and maximizing output c. minimizing costs d. producing the level of output at which MR = MC e. producing the level of output at which TR = TC