An actress sets off a craze for wearing work boots among her fans. What factor is affecting demand?
a. consumer expectation
b. consumer taste
c. complements
d. substitutes
Ans: b. consumer taste
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Every time you go to the grocery store, you try to wait in the shortest line. But the lines always seem to be roughly the same length. Why?
A. The cashiers work at the same speed. B. Other people are trying to choose the shortest line too. C. Random chance equalizes the length of the lines. D. The cashiers do not have an incentive to work faster.
Which of the following changes should make activist policy makers more confident in their capacity to make good policy recommendations?
A) structural change in the economy B) changes in multipliers C) a longer estimated lag for monetary policy D) none of the above
Use the above figure. A leftward shift of the supply curve, ceteris paribus, would result in
A) euro depreciation. B) dollar appreciation. C) dollar depreciation. D) increasing the equilibrium quantity of euros.
Suppose that the demand for lava lamps is elastic, and the supply of lava lamps is inelastic. A tax of $2 per lamp levied on lava lamps will increase the price paid by buyers of lava lamps by
A. $1 B. less than $1 C. between $1 and $2. D. $2