The law of supply states that, other things equal, when the price of a good falls, the quantity supplied falls as well
a. True
b. False
Indicate whether the statement is true or false
True
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A price elasticity of demand of 2.3 implies
a. Demand is inelastic b. Demand is elastic c. Demand is unitary elastic d. Demand is perfectly elastic
Macroeconomics studies the behavior of aggregates while microeconomics studies the behavior of individual decision-making units
a. True b. False
The shoeleather cost of inflation refers to
a. the redistributional effects of unexpected inflation. b. the time spent searching for low prices when inflation rises. c. the waste of resources used to maintain lower money holdings. d. the increased cost to the government of printing more money.
An important difference between perfect competition and monopoly is
A) a monopoly is profitable and a perfect competitor is not. B) the monopoly faces a downward sloping demand curve and the perfect competitor faces a horizontal demand curve. C) the monopoly faces an inelastic demand curve and the perfect competitor faces an elastic demand curve. D) a monopoly is not regulated by the market, while a perfect competitor is regulated by the market.