Could an increase in urban bus fares eventually lead to an increase in the demand for bus service?
A) It could not do so, though it could lead to a reduction in the demand for bus service.
B) It could not do so, though it would probably lead to a reduction in the quantity of bus service demanded.
C) It might do so if increasing the demand for and price of downtown parking increased even more.
D) It might do so by making the demand for bus service unit elastic.
E) Only in cities where the demand for bus service slopes upward to the right.
C
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Say the required reserve ratio is 20 percent. If you pay back a loan of $10,000 a bank had previously made to you, the act of paying back the loan: a. adds $2,000 in bank reserves
b. adds $10,000 in bank reserves. c. eliminates $2,000 in bank reserves. d. eliminates $10,000 in bank reserves.
The rate at which one input can be substituted for another is shown by:
A. the slope of a firm's production function. B. the slope of a firm's efficient production frontier. D. the shape of a firm's production function.
If the poverty line for a family of 4 is $16,000, then the poverty line for a family of two is likely to be
A. less than $8,000. B. greater than $16,000. C. less than $16,000 but greater than $8,000. D. exactly $8,000.
If businesses feel more optimistic about the state of the economy, then this change is likely to:
a. Shift the investment demand curve to the right b. Cause a movement down the investment demand curve c. Cause a movement up the investment demand curve d. Shift the investment demand curve to the left