The demand for durable goods tends to be more price elastic than the demand for non-durables
a. true
b. false
a
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In choosing the optimal output, the monopolist had only to consider its own costs and the demand curve that it faced. How do things change under duopoly and what does the Cournot model argue about how firms will behave?
What will be an ideal response?
Comparative statics analysis in economics is best illustrated as
A) the comparison of equilibrium points before and after changes in the market have occurred. B) a comparison of two types of markets. C) the comparison of the percentage of change in the one variable divided by the percentage change in the other variable. D) an analytical technique used to show best case scenarios of demand and supply curves.
Which of the following is an example of a good with a highly elastic supply curve?
a. luxury goods b. tropical vacations c. pizza d. sports vehicles
Economic theory shows that the current account deficit is always equal to the capital account surplus. This means that
a. the federal budget must always be in balance. b. when a country exports more goods and services than it imports, it also imports assets equal to the difference. c. current account deficits should be avoided. d. trade deficits tend to be eliminated automatically.