The marginal propensity to consume must always be larger than the marginal propensity to save.
Answer the following statement true (T) or false (F)
False
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There is only one supermarket in Beverly Hills, California because
A) supermarkets can't compete effectively against residents in buying land. B) supermarket owners are paying attention to sunk costs in their location decisions. C) the demand for food is highly elastic in wealthy neighborhoods. D) the demand for food is highly inelastic in wealthy neighborhoods. E) wealthy people rarely do their own grocery shopping.
The value of the deposit multiplier is increased if individuals hold all their money in cash
a. True b. False Indicate whether the statement is true or false
When supply is written as Q = c + dP and P and Q are the equilibrium values for price and quantity, which of the following is the value of the price elasticity of supply, ES?
A. -c/d B. c(P/Q) C. -d/c D. d(P/Q)
Refer to the graph shown. Suppose that the market price is $5. At this price, a perfectly competitive firm should:
A. continue to produce in the short run but shut down in the long run. B. shut down immediately. C. shut down in the short run but continue production in the long run. D. continue to produce in both the short run and the long run.