________ describes the relationship between consumption spending and disposable income
A) The liquidity trap B) The consumption function
C) Household wealth D) The paradox of thrift
B
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Is supply more elastic or less elastic as more time passes after a price change? Explain your answer
What will be an ideal response?
Total revenue will decrease when
A. the price elasticity of demand equals 1.20 and price rises. B. price and quantity change in opposite directions. C. the price elasticity of demand is negative. D. the price elasticity of demand equals 1.00 and price falls.
Refer to the above figure. A unit tax of $2 has been placed on the good. Which of the following statements is TRUE about the vertical distance between S1 and S2?
A. The distance is less than $2. B. The distance is $2. C. The distance is more than $2. D. The distance cannot be determined with the information given.
The supply curve for a monopoly and for a perfectly competitive industry are virtually identical.
Answer the following statement true (T) or false (F)