The price elasticity of demand is a measure of
A) the equilibrium price of a product.
B) buyers' responsiveness to changes in the price of a product.
C) the amount of a product purchased when income increases.
D) whether a product is a substitute or a complement.
E) how much a change in demand affects the equilibrium price.
B
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If the government proposed a one-time tax of 25% on accumulated wealth, this would likely
A) reduce the incentive for individuals to accumulate wealth. B) increase the incentive for individuals to accumulate wealth. C) have no impact on individual accumulation of wealth since it is a one-time tax. D) All of the above are equally likely to happen.
In an effort to increase government revenue, Congress and the president decide to increase the corporate profits tax. The likely result will be
A) the supply curve for bonds shifts to the left. B) the demand curve for bonds shifts to the left. C) the equilibrium interest rate rises. D) the equilibrium price of bonds falls.
Suppose a previously competitive labor market turns into a monopsony. The labor supply curve faced by the new monopsonist is:
a. above the labor supply curve under perfect competition. b. the market supply curve of labor. c. below the labor supply curve under perfect competition. d. changed because workers are now more willing to supply labor. e. perfectly horizontal.
The consumption of public goods is
a. excludable and rivalrous b. excludable and non-rivalrous c. non-excludable and rivalrous d. non-excludable and non-rivalrous