Refer to the above figure. Medicare subsidies have increased the price of medical services to Ps. Which of the following statements is TRUE about the effect the Medicare subsidy has had on the consumption of medical services?
A) The amount of medical services provided has decreased from Q0 to Qd as a result of the subsidy.
B) The amount of medical services provided has increased from Q0 to QM as a result of the subsidy.
C) The amount of medical services provided has increased from Qd to QM as a result of the subsidy.
D) The amount of medical services provided has remained unchanged as a result of the subsidy.
B
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The law of demand asserts that all else equal, if the price of a good ________, the quantity demanded of that good ________
A) stays the same; decreases B) falls; decreases C) rises; stays the same D) falls; increases E) None of the above is correct.
Product differentiation is a defining characteristic of
A) perfectly elastic demand. B) oligopoly. C) perfect competition. D) monopolistic competition.
A pair of shoes manufactured in Milan, Italy cost 195 euros. What is the dollar value of the shoes if the exchange rate is $0.89 per euro?
A) $173.55 B) $195.00 C) $219.00 D) $890.00
Why is residential investment procyclical?
What will be an ideal response?