Andi uses all of her income to purchase books and games. At any two points A and B on Andi's budget constraint,
a. Andi is spending all of her income on books and games.
b. Andi is spending one half of her income on books and the other half of her income on games.
c. the price of books relative to the price of games is different.
d. All of the above are correct.
a
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In the figure above, originally the apartment rental market is in short-run and long-run equilibrium with a rent of $600 per month. Then the government imposes a rent ceiling of $500 per month, which causes a shortage
Suppose that apartments are a normal good and incomes rise. The increase in income A) decreases the shortage. B) has no effect on the shortage. C) increases the shortage. D) raises the rent.
Refer to Figure 9.4. In the long run, how much should the firm produce at the price P3?
A. 0
B. Q1
C. Q2
D. Q3
The law of demand is simply a reflection of the
What will be an ideal response?
Since 1970, the highest inflation rate in the U.S. occurred in
A. 1975. B. 1981. C. 1983. D. 1994.