In the short run, consumers typically ____ to price changes (when compared to the long run)
a. are very responsive
b. are more demand sensitive
c. are less demand sensitive
d. do not respond at all
e. overreact
c
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A bank's actual reserves can be calculated by: a. multiplying its demand deposits by the required reserve ratio. b. multiplying its excess reserves by the required reserve ratio. c. subtracting its required reserves from its excess reserves
d. adding its required reserves and its excess reserves.
The Montreal Protocol uses the following instruments to protect the ozone layer
a. a CFC production and consumption allowance market b. a fund to subsidize developing countries c. a deposit-refund system for CFC substances d. all of the above e. a and bonly
William likes Dr. Pepper and pork sandwiches. When the price of pork sandwiches rises, the substitution effect causes Dr. Pepper to be relatively
a. more expensive, so William buys more Dr. Pepper. b. more expensive, so William buys less Dr. Pepper. c. less expensive, so William buys more Dr. Pepper. d. less expensive, so William buys less Dr. Pepper.
Figure 10-3
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When the economy represented in Figure 10-3 has completed the self-correcting adjustment process, the expenditure line in graph (a) will be
A. flatter. B. steeper. C. higher. D. lower. E. unchanged.