During a football game, it starts to rain and the temperature drops. The senior class, which runs the concession stand and is studying economics, raises the price of coffee from 50 cents to 75 cents a cup. They sell more than ever before. Which answer explains this?
A. The supply of coffee increased
B. The demand curve for coffee was elastic
C. The supply of coffee decreased
D. The demand for coffee increased
E. The demand curve for coffee was inelastic
D. The demand for coffee increased
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According to the textbook, government price controls fail because:
A. legislation cannot alter basic economic incentives. B. firms ignore the price controls. C. they are not enforced by government. D. bureaucrats lack accurate market data.
Checks are NOT money because they
A) are issued by banks, not by the government. B) are merely instructions to transfer money. C) have value in exchange but little intrinsic value. D) are not backed by either gold or silver.
Whether studying the output of the U.S. economy or how many classes a student will take, a unifying concept is that:
A. both wants and resources are unlimited, so trade-offs are unnecessary. B. wants are limited and resources are unlimited, so trade-offs are unnecessary. C. wants are unlimited and resources are scarce, so trade-offs have to be made. D. wants are limited and resources are unlimited, so trade-offs have to be made.
Which of the following would likely lead to the greatest improvement in the health status of the population in the United States?
a. Improved lifestyles, including reductions in the use of tobacco, alcohol, and drugs b. Higher per capita incomes c. More spending on public health, such as improved water supply and sanitation d. More rural hospitals e. More medical care spending overall