Consider the demand curve of the form Q = a - bP. If a is a positive real number, and b = 0, then demand is
A) completely inelastic.
B) inelastic, but not completely.
C) unit elastic.
D) elastic, but not infinitely.
A
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Economists first began studying the relationship between changes in aggregate expenditures and changes in GDP
A) at the end of the Civil War. B) during the Great Depression. C) during the Industrial Revolution. D) in the 1950s.
The Sherman Act of 1890 and the Clayton Act of 1914 were Antitrust Acts whose purposes included all of the following except
(a) The maintenance of a competitive economy (b) The prevention of monopolies, combinations and other conspiracies in restraint of trade (c) The prevention of price discrimination that reduces competition (d) The prevention of labor union activity that reduces competition in the labor market
The price of video cassette recorders (VCRs) remains constant, but the market demand curve for VCRs shifts leftward as consumers shift to DVDs and other video technologies
What happens to the consumer surplus in this market as the demand curve shifts? A) Increases B) Decreases C) Remains the same D) We do not have enough information to answer this question.
Refer to the information provided in Figure 3.11 below to answer the following question(s).
Figure 3.11Refer to Figure 3.11. A decrease in the price of mushrooms (an input for gardenburgers) will cause a movement from Point B on supply curve S2 to
A. supply curve S1. B. supply curve S3. C. Point C on supply curve S2. D. Point A on supply curve S2.