Which of the three product has a unitary elastic demand curve?
a. Cigarettes
b. Alcohol
c. Sodas
d. None of the above
b
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At the best affordable point, consumers equate their marginal rates of substitution to
A) their money income. B) their real income. C) relative prices. D) relative quantities.
The model of supply and demand is very good at predicting ______.
a. government policies for large and small markets b. government policies for just large markets c. changes in prices in large and small markets d. changes in quantities in large markets but not small ones
A manager in charge of new product development can hire engineers and market researchers. The annual salary of an engineer is $40,000, while a market researcher receives $20,000. The marginal contributions of engineers and market researchers are:
Based on the above information, if the manager currently hires four engineers and one market researcher, what must be true?
A. More new products would be developed if she hires fewer engineers and more market researchers. B. She is making the correct decision because MPE = MPR. C. More new products would be developed if she hires more engineers and fewer market researchers. D. She is not making the correct decision because engineers are more productive than market researchers at all levels of output.
??Exhibit 16A-2 Macro AD/AS Models
?
?In Panel (b) of Exhibit 16A-2, a Keynesian expansionary stabilization policy designed to move the economy from Y1 to Yp would attempt to shift the
A. ?aggregate demand curve (AD) leftward. B. ?SRAS curve leftward. C. ?aggregate demand curve (AD) rightward. D. ? LRAS curve rightward.