A movement up or down the AD curve is due to changes in the prices of all final goods and services, whereas a movement up and down the demand curve for any individual good is due to a change in the price of that good while all other prices are held constant.
Indicate whether the statement is true or false.
Answer: True.
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Briefly describe monetarism and the monetary growth rule
What will be an ideal response?
For an individual's supply curve of labor to be upward sloping:
a. the substitution effect must be greater than the income effect. b. the substitution effect must be equal to the income effect. c. the substitution effect must be less than the income effect. d. is an impossibility.
Commodity money has value only because people have put faith in the money and accept that it has value
a. True b. False Indicate whether the statement is true or false
Suppose that a price discriminating monopolist is able to divide its market into two groups. If the firm sells its product for $50 to the group whose customers have the most elastic demand, what price are they likely to charge to the group whose customers have the least elastic demand?
A. $50 B. more than $50 C. less than $50 D. The answer depends on the marginal revenue for that group.