Another commonly used algebraic form for a demand function is the semi-logarithmic functional form, log(Q) = a - bP + cI, where Q is quantity demanded, P is the product price, and I is income
Here, -100b represents the percentage change in quantity demanded given a one unit increase in price. By the Law of Demand, we should expect the value of b to be: A) positive.
B) negative.
C) positive or negative.
D) We do not have enough information to answer this question.
A
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In a simple economy (no government sector), the equilibrium level of GDP will be less than the full employment level of income if, at the full employment level of income, the
a. saving that consumers want to do is less than investing that businesses want to do. b. saving that consumers want to do is greater than investing that businesses want to do. c. saving that consumers want to do is less than spending that consumers want to do. d. inventories are being depleted.
The competitive firm's short-run supply curve is its
a. marginal revenue curve, but only the portion where marginal revenue exceeds marginal cost. b. marginal cost curve. c. marginal cost curve, but only the portion above the minimum of average total cost. d. marginal cost curve, but only the portion above the minimum of average variable cost.
Say a worker sees work and leisure as perfect complements with a ratio of 5 to 1 (requiring 1 hour of leisure for every $5 in income). If this worker earned a wage of $10 her optimal demand for leisure would be:
A. 24. B. 10. C. 16. D. 20.
The? world's population is growing at a rate of about
What will be an ideal response?