Answer the following statement(s) true (T) or false (F)
1. When suppliers are not satisfied, they lower their prices to attract more demanders.
2. If the demand for a good is high, then there will be a shortage of that good.
3. The equilibrium price of a good will rise in response to either a rise in demand or a fall in supply.
4. When a sales tax of 50¢ per carton is imposed on cigarettes, the equilibrium price drops by precisely 50¢ per carton.
5. Suppliers of a commodity are better off whenever the legal incidence of a tax is shifted away from the suppliers to the demanders.
1. True
2. False
3. True
4. False
5. False
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_________________—a term referring to the process whereby an economy as a whole turns economic inputs such as human capital, physical capital, and technology into output measured as GDP per capita.
a. production function b. aggregate production function c. innovation d. technological change
The kinked demand curve exists because consumers make erratic decisions
Indicate whether the statement is true or false
A change in the quantity demanded of labor is represented by a shift in the labor demand curve
a. True b. False Indicate whether the statement is true or false
Deflation refers to unemployment accompanied by severe inflation
a. True b. False Indicate whether the statement is true or false