Why are time series data unlikely to give an accurate estimate of demand?
Demand may have shifted over time, so that instead of obtaining points on a single demand curve, one is connecting points from several demand curves. One needs to obtain several price, quantity points at a single point in time to be assured of an accurate estimate of a single demand curve.
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In the wake of worsening relations with China, some Americans called for an increase in tariffs on Chinese products coming into America. If higher tariffs are imposed on clothing produced in China, the price of clothing in America would
A) decrease. B) increase. C) not change. D) first increase then decrease. E) first decrease then increase.
A notable and unique feature of the colonial monetary system was
a. the use of minted silver coins. b. the circulation of commodities as money. c. the use of a widely accepted paper currency. d. the development of checking accounts issued by private commercial banks.
A corporation may be reluctant to raise capital by issuing stock because
a. issuing stock to obtain money for investment is riskier than selling bonds. b. holders of already-existing stock will gain more voting power in the corporation. c. obtaining government permission to issue stock can be time-consuming and expensive. d. All of the above are correct.
If a good has an absolute price elasticity of 4, the demand for the good is
A) unit elastic. B) inelastic. C) perfectly elastic. D) elastic.