Economists use elasticity as a tool to measure
a. the relationship between people's attitudes and their income
b. the relationship between people's willingness to supply a good and their willingness to demand that good
c. people's sensitivity to changes in price or income
d. the effect of changes in supply on people's willingness to demand goods
e. the effect of changes in supply on the government's ability to tax
C
You might also like to view...
Refer to Figure 10.3. A negative demand shock with no change in the real interest rate is best represented by ________ in panel (a) and ________ in panel (b)
A) a shift from AE3 to AE2; a shift from IS2 to IS1 B) a shift from AE2 to AE3; a shift from IS1 to IS2 C) a shift from AE2 to AE1; a movement from point B to point A D) a shift from AE3 to AE1; a movement from point C to point A
Universal child support assurance would cost little more than the present system
Indicate whether the statement is true or false
Though the owners of NFL and MLB teams may be able to show that they lose money each year, economists who study the subject insist that they
A. lose the same amount as they do in their other businesses. B. lose money only if they lose games. C. are using phony accounting tricks to come up with those losses, and that every franchise makes money. D. still make money because they can sell their team for much more than they paid for it.
Inflation caused by an increase in aggregate spending is referred to as:
A. demand-push inflation. B. demand-pull inflation. C. hyperinflation. D. cost-push inflation.