When prices rise:
A) money supply tends to rise. B) menu costs tend to fall.
C) consumers' purchasing power falls. D) money demand tends to fall.
C
You might also like to view...
To the extent that customers can resell products to each other, the effectiveness of a price discrimination strategy will be undermined
Indicate whether the statement is true or false
Terry wants to sell his car and the lowest price he is willing to accept is $3,000 . Alice likes the car and is willing to pay at most $4,000 for it. They begin to negotiate to arrive at a price. Which of the following statements will be true?
a. They are playing a zero-sum game. b. The higher the price they agree on, the greater the benefit to both. c. The longer they take to arrive at an agreed price, the lower the benefit to them. d. They are playing a positive-sum game where their benefits add up to $1,000.
The deadweight loss from a tax of $x per unit will be smallest in a market
a. in which demand is elastic and supply is inelastic. b. in which demand is inelastic and supply is elastic. c. in which demand is inelastic and supply is inelastic. d. None of the above are correct; we need to know the value of x in order to determine the answer.
If the price elasticity of supply is 0.3, supply is:
A. unaffected by price changes. B. inelastic. C. unit elastic. D. elastic.