If consumers spend more money on coffee than on sugar, then the demand for a pound of coffee is probably _________________ than is the demand for a pound sugar of because ________________.
A. less price elastic; coffee requires a larger portion of consumers' incomes.
B. more price elastic; coffee requires a larger portion of consumers' incomes.
C. less price elastic; people will take a longer time to adjust to the change in its price.
D. more price elastic; people will take a longer time to adjust to the change in its price
B. more price elastic; coffee requires a larger portion of consumers' incomes.
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Answer the following statement(s) true (T) or false (F)
1. The reported Air Quality Index (AQI)uses data from the EPA’s monitoring of metropolitan statistical areas. 2. The Air Quality Index (AQI) is formed from concentration data collected from a monitoring network that measures hazardous air pollutants. 3. Photochemical smog is caused by a chemical reaction involving criteria pollutants in the presence of sunlight. 4. Among all identified transportation sources, off highway vehicle emissions are the largest contributors to the formation of photochemical smog. 5. Title II of the Clean Air Act Amendments of 1990 strengthened regulations on motor vehicle emissions and fuels.
If Family Travel Agency, a monopolistic competitor, offers services that are differentiated from the services of other producers in the industry, it
a. faces a perfectly elastic demand curve b. is a price taker c. has some power to control the price it charges d. faces a perfectly inelastic demand curve e. produces a product with no close substitutes
The law of diminishing marginal product
A) holds in the short run and the long run because as you increase the amount of variable inputs eventually the increases in output will decrease. B) does not hold in the short run because of fixed costs. C) does not hold in the long run because there are no fixed inputs in the long run. D) holds in the short and long run because of economies to scale.
Answer each of the following questions assuming the economy is experiencing a negative output gap.
a. Is Inflation decreasing, increasing, or stable? b. Is actual output greater than or less than potential output? c. Is unemployment rising or falling? d. Is the Federal Reserve more likely to pursue expansionary or contractionary monetary policy? e. Is the economy likely experiencing an expansion or contradiction?