If the price of a good increases from $3 to $4, and the quantity demand remains unchanged, then the demand is
A) perfectly inelastic.
B) perfectly elastic.
C) somewhat elastic.
D) infinite.
A
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A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.
The real-balances effect on aggregate demand suggests that a:
A. Lower price level will decrease the demand for money, decrease interest rates, and increase consumption and investment spending B. Lower price level will decrease the real value of many financial assets and therefore cause an increase in spending C. Lower price level will increase the real value of many financial assets and therefore cause an increase in spending D. Higher price level will increase the real value of many financial assets and therefore cause an increase in spending
If the bidders at a first-price auction have true values of $78, $72, $66 and $65, the item will sell for
a. Just above $78 b. Just under $72 c. Just above $72 d. Just above $66
An increase in the price of a good is shown by a:
A. rightward shift of the demand curve. B. leftward shift of the demand curve. C. movement up and to the left along the demand curve. D. movement down and to the right along the demand curve.