Which of the following situations best demonstrates the law of demand?
A. Movie-goers see fewer movies per year due to an overall decrease in the quality of newly released motion pictures.
B. An increase in the number of people writing Economics textbooks results in a decrease in average textbook prices.
C. A drought causes a decrease in the availability of pumpkins, resulting in fewer jack-o-lanterns displayed on Halloween.
D. Movie-goers react to an increase in the price of a theater ticket by seeing fewer movies per year.
Answer: D
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In the above table, for Mary the opportunity cost of producing a dress is ________ and the opportunity cost for Mark of producing a dress is ________
A) 1 1/2 jackets; 2 1/2 jackets B) 1 jacket; 1 jacket C) 1 dress; 1 dress D) 1 1/2 jackets; 2/3 of a jacket E) 1 1/4 jackets; 1/2 of a jacket
The ability to shift a tax burden depends on the relative elasticities of demand and supply for the taxed commodity
a. True b. False Indicate whether the statement is true or false
One of the distinguishing differences between periods of low inflation and periods of high inflation is that
A. low inflation periods are short lived. B. high inflation periods are short lived. C. high inflation periods are long lived. D. low inflation leads to high inflation.
If the price of gasoline has increased from $3 per gallon to $4 per gallon at the same time that the overall price index increased from 200 to 266.66, then you know that the inflation adjusted price of gasoline has
A. remained constant. B. increased. C. decreased.