For all goods, the long run demand curve is always more elastic than the short run demand curve
Indicate whether the statement is true or false
False. Goods that can be easily stored may have a more elastic short run demand curve than long run.
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With perfect price discrimination, the marginal revenue curve
A) is above the demand curve. B) is equal to the demand curve. C) is horizontal. D) is below the demand curve.
A famous opera star made $2 million per year. He said he would rather sell insurance if he couldn't make more than $100,000 per year. If he is telling the truth, what's his opportunity cost as an opera star?
A) $2.0 million B) $100,000 C) $1.9 million D) $2.1 million
Refer to the following graph to answer the question:
Suppose price rises from $90 to $110. Using representative arrows, the quantity effect is a relatively ________ (short, long) arrow pointing ________ (upward, downward).
A. short; upward B. short; downward C. long; downward D. long; upward
Since the legal age to vote in the United States is 18, the legal drinking age in the United States should be lowered to 18. This statement is best described as
A. a positive statement. B. a normative statement. C. an implication of an efficient market. D. a marginal statement.