Suppose the demand for peaches sold from one roadside stand in Georgia is perfectly elastic. As a result, a 7 percent increase in the price charged by the owner of this stand leads to
A) zero peaches sold by this stand.
B) no change in the quantity demanded at this stand.
C) a 7 percent decrease in the quantity demanded at this stand.
D) a 7 percent decrease in demand at this stand.
E) a virtually infinite increase in the quantity demanded at this stand.
A
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Reducing inflation is a more important objective than economic growth" is an example of
a) Normative economics b) Positive economics c) Objective economics d) Reality economics
An increase in Swiss prices will cause:
A. an increase in the demand for U.S. dollars and an increase in the exchange rate of Swiss francs per dollar. B. a decrease in the demand for U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. C. an increase in the supply of U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. D. a decrease in the supply of U.S. dollars and an increase in the exchange rate of Swiss francs per dollar.
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A. does not change; rises B. rises; falls C. rises; rises D. does not change; falls
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A. health care facilities exist in most parts of the world. B. home remedies and traditional village doctors are more affordable. C. doctors in government clinics have large incentives to practice good medicine. D. people are generally resistant to improvements in their healthcare systems.