In the above figure, a price floor of $4
A) leads to a shortage.
B) leads to a surplus.
C) has no effect.
D) shifts the demand curve leftward.
B
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If the output of a firm is increased by one unit, the revenue addition is called
A. total revenue. B. average revenue. C. marginal revenue. D. economic profit.
In the above figure, over the price range P1P2, demand is
A) unit elastic. B) elastic. C) inelastic. D) perfectly elastic.
Crowding out occurs when:
a. an increase in private spending results in a decrease in government deficit. b. an increase in private spending results in an increase in government deficit. c. government deficit spending results in less private spending d. government deficit spending results in more private spending.
The cross-price elasticity of demand between good X and good Y is 0.5. Given this information, which of the following statements is true?
A. The demand for goods X and Y is inelastic. B. The demand for goods X and Y is income inelastic. C. Goods X and Y are complements. D. Goods X and Y are substitutes.