A demand relationship in which the quantity demanded changes exactly in proportion to the change in price is
A) elastic.
B) unit-elastic.
C) inelastic.
D) consistent with zero elasticity.
Answer: B) unit-elastic.
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By 1774, the Southern colonies'
(a) share of total colonial wealth was the lowest. (b) wealth per capita was the highest. (c) land contributed very little to total wealth. (d) depended heavily on immigrant labor.
Refer to the following graph.
Which price will create the greatest shortage?
A. P0 B. P1 C. P2 D. P3
A limit on the amount of avacados that can be imported into the United States is an example of
A. the rationing function of prices protecting United States avacado farmers. B. an import quota. C. a price floor set by the government. D. a price ceiling set by government.
When the price level is below the level at which the aggregate demand curve crosses the long run aggregate supply curve
A. there will be pressures that will lead to a shift of either the aggregate demand or the long run aggregate supply curves. B. total planned real expenditure will be lower than actual real GDP, and the price level will increase. C. total planned real expenditures will exceed actual real GDP, and the price level will increase. D. there will be no price level change.