Price elasticity of demand along a linear, downward-sloping demand curve decreases as price falls
a. True
b. False
Indicate whether the statement is true or false
True
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When a simple monopolist chooses to sell an additional unit of a good or service
a. marginal revenue will be equal to the going market price. b. marginal revenue will always be negative. c. it will only have to lower its price on the additional unit. d. it will have to lower its price on the additional unit and on all other units.
Price controls date back to
A. World War II. B. the U.S. Revolutionary War. C. thousands of years, at least back to ancient Babylonia. D. the 1970s. E. the last 20 years.
The figure above shows Ronald's budget line. He has a weekly income of $20, which he spends on hotdogs and hamburgers. Now Ronald's income decreases to $10 per week and the price of a hotdog doubles
Ronald's budget line becomes ________ and ________. A) flatter; shifts rightward B) flatter; does not shift C) steeper; shifts rightward D) steeper; shifts leftward
The condition in circular-flow models whereby firms purchase all the goods not purchased by households is that
A) inventory investment is zero. B) saving is zero. C) fixed investment is zero. D) consumption equals investment. E) investment equals saving.