When supply falls and demand remains the same, equilibrium price _____ and equilibrium quantity ________.
A. rises; rises
B. falls; falls
C. falls; rises
D. rises; falls
D. rises; falls
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The Purchasing Managers' Index is __________ indicator
A) a leading B) a coincident C) a lagging D) an inconsistent
Which of the following events will help to burst an asset price bubble?
A) Speculative demand for the asset quickly declines. B) Speculative demand for the asset quickly increases. C) New information leads buyers to doubt that prices will continue to increase in the future. D) A and C are correct
Movie theaters are able to offer discounts to senior citizens because:
a. the elderly deserve lower prices because of their contributions to society. b. senior citizens have the most inelastic demand. c. theaters can separate senior citizens from other customers, and it is easier to prevent resale. d. senior citizens cannot see the movie very well because of poor eyesight. e. senior citizens are frequent visitors to the movie theaters.
Intuitively, the marginal rate of substitution for X with Y tells us:
A. how much Y a consumer needs to compensate them for a one-unit decrease in X. B. how much X must be taken away from a consumer to compensate them for a one-unit increase in Y. C. how much X a consumer needs to compensate them for a one-unit decrease in Y. D. how much more Y the consumer will buy if the price of Y increases by $1.