If we are on the upper portion of the market demand curve (above the midpoint) and the price increases by 10%, the quantity demanded will decrease by more than 10%.
Answer the following statement true (T) or false (F)
True
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In the United States, a collusive agreement to restrict output and increases prices is
A) legal. B) the key tool used by oligopolists. C) illegal. D) the key tool used by monopolistic competitors.
For movements along the long-run aggregate supply curve
A) potential GDP is dependent on the price level. B) the prices of goods and services change while the prices of productive resources hold steady. C) the price level and the money wage rate change by the same percentage. D) All of the above are correct.
Assume that when the price of good X is $12, quantity demanded is 32. When price is decreased to $9, quantity demanded increases to 45. Over this range, the arc elasticity of demand is 1.182
Indicate whether the statement is true or false
In a world where people would have no prior information about where they are in an income distribution, given the choice, Rawls argues that they would prefer
a. an income distribution that is relatively equal b. that everyone has the same work opportunities and then let incomes be what the market generates c. to rely on their abilities so accept high levels of income inequality d. that private property be transformed to government property to safeguard their incomes e. less economic assistance to the poor because it distorts the price system