When the relative price of a good increases, consumers respond by buying
a. a larger quantity of that good and a larger quantity of substitutes for that good.
b. a larger quantity of that good and a smaller quantity of substitutes for that good.
c. a smaller quantity of that good and a larger quantity of substitutes for that good.
d. a smaller quantity of that good and a smaller quantity of substitutes for that good.
c
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If the price of a good increases and the total revenue remains the same, the demand for the good is
A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic.
The antebellum period was characterized by many changes in tariff rates. What best describes the effect of removing a tariff on foreign cotton textiles?
a. The total supply curve of textiles would shift back. b. The price of both foreign-made and domestic-made textiles would decrease. c. The price of foreign-made textiles would decrease and the price of domestic-made textiles would increase. d. The total (foreign and domestically produced. quantity of textiles purchased in the US would decrease. e. The real income of textile consumers would decrease.
The first step in forming a corporation is to
a. find a large number of partners b. take out a business loan c. obtain a charter from the state government d. hire more staff e. pay dividends to stockholders
Economists consider environmental pollution to be a(n)
a. externality. b. pure public good. c. allocatively efficient outcome. d. public interest outcome.