Which of the following goods would have the most inelastic demand?
A) bread B) big screen TVs C) luxury cars D) ski vacations
A
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Your income will increase if the Federal Reserve buys a Treasury bill from you and pays you with a check from the Fed
Indicate whether the statement is true or false
If an increase in prices decreases total revenue in the short run, what will it do to total revenue in the long run? a. It will decrease total revenue in the long run
b. It will increase total revenue in the long run. c. It will leave total revenue unchanged in the long run. d. Any of the above results are possible in the long run.
Income supplements large enough to significantly increase the economic status of poor people will
a. encourage behavior that increases the risk of poverty. b. create high implicit marginal tax rates that reduce the incentive of transfer recipients to earn. c. provide low-income recipients with a strong incentive to work and increase their earnings so they will not be dependent on income transfers. d. do both a and b.
When the public expects inflation, real and nominal interest rates will differ because inflation needs to be accounted for in calculating the real return from lending and borrowing.
Answer the following statement true (T) or false (F)