The above figure shows the market for pizza. Which figure shows the effect of a new report by the U.S. Surgeon General that eating pizza lowers cholesterol levels, an outcome many people want?
A) Figure A
B) Figure B
C) Figure C
D) Figure D
A
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The aggregate demand curve shows the relationship between planned purchases of
A) all final goods and services and the price level. B) all final goods and services and interest rates. C) all final goods and services and total planned production. D) all final goods and services and nominal GDP.
The figure above represents the behavior of total revenue as price falls along a straight-line demand curve. Unit elasticity of demand occurs at
A) point g. B) point h. C) point i. D) point j.
Refer to Figure 10.2. If in this economy the MPC = 0.6, Y2 = $50 billion, and AE2 is $5 billion below AE1, potential GDP is
A) $53 billion. B) $55 billion. C) $58.3 billion. D) $62.5 billion.
Suppose the cross-price elasticity of demand between hot dogs and mustard is -2.00 . This implies that a 20 percent increase in the price of hot dogs will cause the quantity of mustard purchased to
a. fall by 200 percent. b. fall by 40 percent. c. rise by 200 percent. d. rise by 40 percent.