Which of the following is a possible reason for a comparatively steeper demand curve for health care?
a. A large increase in the price of health care leads to a more than proportionate fall in the quantity demanded for health care.
b. The demand curve for health care is comparatively steeper than other products, because health care is a Giffen good.
c. A change in the price of health care
leads to no change in the profit earned by the suppliers.
d. A large increase in the income of households leads to a less than proportionate increase in the quantity demanded.
e. A large increase in price does not cause a reduction in the purchase of health care by the same proportion.
e
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What will happen to the equilibrium price and quantity of coffee if it is discovered to help prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee?
A) The price will fall and the effect on the quantity is uncertain. B) The quantity will increase and the effect on the price is uncertain. C) The quantity will decrease and the price will rise. D) The quantity will increase and the price will remain unchanged.
A Lorenz curve can be used to illustrate
A) the supply of labor. B) the substitution effect. C) the income effect. D) the distribution of income.
In the case of positive externalities, social benefits are __________ internal benefits.
A. less than B. equal to C. sometimes greater and sometimes less than D. greater than
Monopolistic competition differs from perfect competition only in the number of firms participating in the market
a. True b. False Indicate whether the statement is true or false