Other things being equal, a price-discriminating firm will charge less to the customers who
A) have the lowest incomes.
B) have the least elastic demand for its product.
C) have the most elastic demand for the product.
D) are the most rational in making their decisions.
C
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In the short run, if current output remains persistently above potential ________
A) inflation will rise causing a movement along the aggregate supply curve B) expected inflation will rise causing an upward shift of the aggregate supply curve C) the aggregate supply curve will shift until current output returns to its potential level D) all of the above E) none of the above
What does the "price elasticity of demand" measure? What does a price elasticity of demand coefficient of 1.2 mean? Does the product have an elastic, unitary elastic or inelastic demand?
Which of the following supply shocks will shift the long-run aggregate supply curve outward?
a. An increase in business taxes b. An increase in gasoline taxes c. An increase in the cost of raw materials d. An increase in the amount and cost of government regulation e. An increase in agricultural output
Economics is the study of choices we make among our many wants and desires
a. True b. False Indicate whether the statement is true or false