In the above figure, what would result if the price was $40?
A) a surplus
B) a shortage
C) equilibrium
D) excess demand
A
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Most innovation comes from universities and governments, which are inherently market driven.
Answer the following statement true (T) or false (F)
HAC standard errors and clustered standard errors are related as follows:
A) they are the same B) clustered standard errors are one type of HAC standard error C) they are the same if the data is differenced D) clustered standard errors are the square root of HAC standard errors
Assuming that beer is a normal good, what will happen to the demand for beer near college towns if student income increased?
a. Demand will fall because students love these beers
b. Demand will fall
c. Demand will rise
d. Supply would rise
Suppose that the percentage change in supply is 20%, the price elasticity of demand is 3, and the percentage change in the equilibrium price is 4%. What is the price elasticity of supply?
A. 0 B. 2 C. 4 D. 5