If the demand for a product is elastic, the quantity demanded changes by a larger percentage than the percentage change in price
Indicate whether the statement is true or false
TRUE
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Supply curves applicable to shorter periods of time tend to:
a. be represented by horizontal lines parallel to the quantity axis. b. be perfectly elastic. c. be more inelastic than supply curves that apply to longer periods of time. d. be more elastic than supply curves that apply to longer periods of time. e. have a price elasticity of supply that is approximately equal to 1.
The slope of a line is the ratio of the vertical distance covered to the horizontal distance covered along the line
a. True b. False Indicate whether the statement is true or false
"Competition is the great regulator." This statement reflects that
A) when competition is present, businesses have a strong incentive to serve the general public and therefore there is little need for regulation of competitive markets. B) government regulation is the key ingredient of competitive markets and therefore markets cannot be competitive without regulation. C) when markets are regulated by the government, there is no need for competition among business firms. D) extensive regulation is needed to assure that businesses will treat consumers properly and serve the interests of the general public.
Which statement is true?
A. Only monetary policy can affect aggregate demand. B. Only fiscal policy can affect aggregate demand. C. Both monetary and fiscal policy can affect aggregate demand. D. Neither monetary nor fiscal policy can affect aggregate demand.