If the supply curve for aspirin is perfectly elastic, a reduction in demand will cause the equilibrium price to:
a. rise and the equilibrium quantity to fall
b. rise and the equilibrium quantity to stay the same.
c. fall and the equilibrium quantity to fall.
d. stay the same and the equilibrium quantity to fall.
d
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If the government wants to engage in fiscal policy to increase real GDP, it could
a) increase government expenditure in order to increase short-run aggregate supply b) decrease government expenditure in order to increase short-run aggregate supply c) increase government expenditure in order to increase aggregate demand d) decrease government expenditure in order to decrease aggregate demand
Which of the following statements is false?
A) Regardless of the commodity, the farmer always receives 20 cents of the dollar spent in food. B) The Latin phrase ceteris paribus means everything else the same or holding all other factors constant. C) The rational consumer maximizes satisfaction subject to a budget constraint. D) Agricultural economics is an applied social science.
The value that consumers get (from consuming a product) over and above that they actually paid for the product is called:
A. Consumer utility B. Consumption expenditures C. Consumer surplus D. Consumer demand
The price of a financial asset should equal the
A) present value of the payments to be received from owning the asset. B) future value of the payments to be received from owning the asset. C) face value of the asset less the future payments to be received from owning the asset. D) coupon value of the asset divided by the effective interest rate at the time the asset was purchased.