When changes in a product's price cause corresponding changes in consumer demand, the product has
A. elastic demand.
B. usefulness.
C. utility.
D. inelastic demand
A. elastic demand.
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The above figure shows the U.S. market for replacement cell phone batteries. Area E is the
A) producer surplus when there is free trade. B) deadweight loss from tariff. C) tariff revenue. D) increase in producer surplus due to the tariff. E) gain in total surplus due to the tariff.
M2 is
A) smaller than M1. B) larger than M1. C) equal to M1, given full employment. D) equal to M1, but only when all three functions of money apply.
One reaction of firms to the adverse selection problem is to
A) rely on internal funds to finance investment. B) use the stock market rather than the bond market to raise funds. C) use the bond market rather than the stock market to raise funds. D) borrow long-term rather than short-term.
A decrease in the productivity of labor will shift the demand curve for labor to the left, other things being equal
a. True b. False Indicate whether the statement is true or false