The marginal propensity to consume is
a. the fraction of an increase in income that would be spent on consumer goods.
b. the additional desire people have for consumer goods.
c. the fraction of a person’s total income normally spent for consumer goods.
d. the change in consumption resulting from a $1 change in the price level.
a. the fraction of an increase in income that would be spent on consumer goods.
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In American politics, we often observe that during a campaign, the Democratic and Republican positions on many issues are similar, which illustrates
a. Arrow's impossibility theorem. b. the Condorcet paradox. c. a Borda count. d. the median voter theorem.
The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5. If this economy is open to trade, and the world price of a car is $6,000, and the government imposes a quota allowing 3,000 cars to be imported, then domestic price of the car will be ________.
A. $6,000 B. $8,000 C. $10,000 D. $5,000
Refer to the above graphs. What will happen in the long run to industry supply and the equilibrium price of the product?
A. S will increase, P will decrease. B. S will decrease, P will increase. C. S will increase, P will increase. D. S will decrease, P will decrease.
At the midpoint of a downward sloping straight-line demand curve, the demand
A) is elastic. B) is unit elastic. C) is inelastic. D) has an elasticity exactly equal to zero.