When a consumer is able and willing to buy a good or service, s/he creates ____________ .
a. consumption
b. demand
c. elasticity
d. allocation
Ans: b. demand
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Based on the model, the firm’s M? function must be
Consider the following model for the production of refined oil: MSC = 10 + 0.5Q; MEC = 0.3Q; MSB = 30 – 0.3Q; MEB = 0. a. M? = 20 – 0.8Q c. M? = 0.3Q b. M? = 20 – 0.5Q d. M? = 20 – 0.1Q
A decrease in aggregate demand will
A) cause the short-run Phillips curve to shift to the right. B) decrease unemployment. C) move the economy to a lower point on the short-run Phillips curve. D) cause inflation.
When a product's price increases from $9 to $11, the quantity demanded decreases from 1200 to 800 . Based on this information, the price elasticity of demand (in absolute terms) is estimated to be equal to: a. 0.5
b. 2.0. c. 0.25. d. 4.0.
Which of the following is a drawback of government investment in R&D?
a. Close government scrutiny of R&D projects b. Lack of tax reductions for R&D expenses c. Unclear assignment of patent rights d. Additional costs of government free riders