Just before Valentine's Day, the price of roses increases dramatically. This is because
a. self-interested individuals try to charge more for a good than consumers are willing to pay.
b. demand increases while the supply of roses remains relatively constant.
c. the supply curve of roses is highly elastic.
d. the demand for roses is relatively inelastic most of the year, but becomes more elastic as demand increases.
B
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Suppose people decide to buy fewer GE stoves. If General Electric reduces the number of its employees to reduce its costs but no other stove company does so, which type of unemployment results?
A) cyclical B) marginal C) structural D) frictional E) discouraged
Which of the following is true about marginal utility?
a. Marginal utility is total utility divided by the total quantity consumed. b. Marginal utility is the change in total utility derived from a one-unit change in consumption of a good. c. Marginal utility is the total satisfaction that a consumer experiences from all the units of a good or service consumed. d. Marginal utility usually increases with in increase in consumption.
The type of unemployment that occurs because of a recession is called
What will be an ideal response?
The fact that many people drive faster than the posted speed limit suggests that
A) not all price floors are enforceable. B) not all price and quantity regulations are enforceable. C) individual drivers act irrationally. D) government regulation is utterly useless.