An increase in demand for a good will lead to a larger increase in price if the supply is relatively elastic.
Answer the following statement true (T) or false (F)
False
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A sharp increase in the divorce rate increases the number of lawyers hired to determine divorce settlements. This will
A) decrease GDP and increase well-being in the economy. B) decrease GDP and decrease well-being in the economy. C) increase GDP and decrease well-being in the economy. D) increase GDP and increase well-being in the economy.
The income elasticity of demand for shoes is estimated to be 1.50 . We can conclude that shoes:
a. have a relatively steep demand curve. b. have a relatively flat demand curve c. are a normal good. d. are an inferior good.
The most common form of trading goods for goods is
a. bilateral trade. b. government commodity distribution. c. status-based trades. d. barter. e. payments in kind.
A firm with market power has an individual consumer demand of Q = 20 ? 4P and costs of C = 4Q. What is the optimal amount of this product to package in a single block?
A. 4 B. 5 C. 3 D. 2