When economists say the demand for a good is highly inelastic, they mean that
a. even if the price rose substantially, suppliers would be unwilling to offer much more of the good.
b. the facilities utilized by producers of the good are inflexible; producers cannot easily expand their facilities, even in the long run.
c. consumers will respond to a change in the price of the good by purchasing substantially more of it.
d. a large (percentage) change in the price of a good will result in only a small (percentage) change in the quantity demanded.
D
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Calculate the dollar price of a German automobile worth 40,000 euros, if the dollar per euro exchange rate is 1.5
a. $41,500 b. $26,700 c. $60,000 d. $50,000 e. $38,500
A rightward shift of the economy's labor supply curve would result from a(n)
a. cut in income tax rates or an increase in welfare benefits to the needy b. cut in income tax rates or a cut in benefits to the needy c. increase in income tax rates or a cut in benefits to the needy d. increase in income tax rates or an increase in benefits to the needy e. cut in income tax rates or a freeze on benefits to the needy
What are the reasons for unequal distribution of income? List at least six reasons
Derek decides to forego a major appliance purchase and save the money. He transfers $2,100 from his checking account to his money market mutual fund. As a result of this transfer,
a. both M1 and M2 decrease by $2,100. b. M1 increases by $2,100 and M2 increases by $2,100. c. M1 decreases by $2,100 and M2 increases by $2,100. d. M1 decreases by $2,100 and M2 stays the same.