The price elasticity of demand for an exhaustible natural resource tends to
a. fall over time because extraction costs rise over time.
b. stay constant over time because the resource's price rises at a constant rate.
c. rise over time because the resource's rising price stimulates conservation and the development of substitutes.
d. rise over time because resource extraction tends to become more efficient over time.
c
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The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P. Suppose the economy is closed. The equilibrium price of a car is ________ and equilibrium quantity is____.
A. $8,000; 12,000 B. $6,000; 14,000 C. $12,000; 8,000 D. $10,000; 10,000
The CPI in 1990 was 131, and the CPI in 2010 was 218. If you earned a salary of $40,000 in 1990, what would be a salary with equivalent purchasing power in 2010?
A) $45,977 B) $66,565 C) $87,200 D) $143,486
Twenty-four years before CUSTA, another agreement between the same countries covered trade in
A) textiles. B) steel. C) autos. D) agriculture. E) telecommunications.
For simple loans, the yield to maturity
A) is always less than the specified simple interest rate. B) is always greater than the specified simple interest rate. C) is always equal to the specified simple interest rate. D) may be less than, greater than, or equal to the specified simple interest rate, depending on the maturity of the loan.