If the price rises and the total amount consumers spend on the good remains unchanged, then demand must be
A. elastic.
B. perfectly inelastic.
C. unit elastic.
D. inelastic.
Answer: C
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According to the article, the best description of Canada's position in the business cycle is
A) at a peak. B) at a trough. C) in an expansion. D) in a recession.
A shift in demand occurs when
A) the price of that good changes. B) the amount demanded of a good changes at each existing price. C) there is a change in quantity demanded. D) the price changes and the good is a normal good.
Assume Qs represents the quantity supplied at a given price and Qd represents the quantity demanded at the same given price. Which of the following market conditions produce a downward movement of the price?
a. Qs = 1,000, Qd = 750 b. Qs = 750, Qd = 750. c. Qs = 750, Qd = 1,000 d. Qs = 1,000, Qd = 1,000.
Many economists believe that at the current level of consumption of health care in the United States, the marginal cost of health care for society is:
A. Less than the marginal benefit B. Greater than the marginal benefit C. Equal to the marginal benefit D. Zero