The tendency for consumers to purchase more of a good or service as its price falls is captured by the:
A. law of demand.
B. law of increasing cost.
C. Low-Hanging Fruit Principle.
D. law of supply.
Answer: A
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The long-run average annual growth of real GDP per person is the United States is approximately ________ percent.
A. one B. seven C. five D. two
What are supply shocks? Explain what effect adverse and favorable supply shocks have on the supply curve
What will be an ideal response?
The figure above shows the market for milk in Cowland. A subsidy paid to producers of $1 per gallon of milk is introduced. If there are no external costs and no external benefits, the quantity of milk sold is
A) greater than the efficient level of output. B) less than the efficient level of output. C) 100 million gallons greater than the efficient level of output. D) the efficient level of output.
A firm practicing direct price discrimination will charge lower prices to
a. Consumers with an elastic demand b. All consumers c. Consumers known to have an inelastic demand d. Consumers known to have a unitary elastic demand