Understanding the supply and demand model facilitates
A) greed.
B) charity.
C) happiness.
D) prediction.
D
You might also like to view...
Many large urban banks experienced heavy losses during the 1980s and 1990s. Many of the losses at urban banks can be attributed to
a. heavy international loan commitments and risky investments b. widespread bank panics during the late 1980s c. extraordinary oil profits of Saudi Arabia and Venezuela d. investing too heavily in farm machinery e. the U.S. trade deficit with Japan
If the absolute value of the price elasticity of demand for tickets to a football game is 2, then if the price increases by 1 percent, quantity demanded decreases by:
A. 4 percent. B. 0.5 percent. C. 1 percent. D. 2 percent.
Suppose the government raises taxes. Which curves in the aggregate demand and aggregate supply model would be affected, and which way would they shift?
Along a straight-line downward-sloping demand curve, a decrease in the market price of a good:
A) will cause no change in consumer surplus. B) will increase consumer surplus. C) will decrease consumer surplus. D) may either decrease or increase consumer surplus.