Suppose the market price for one unit of a good is $12.50, and 50 units will be exchanged at that price. If a price floor is imposed at $12.00 per unit, the price will:
a. fall to $12.00, and quantity will fall below 50 units
b. fall to $12.00, and quantity will remain at 50 units.
c. remain at $12.50, and quantity will rise above 50 units.
d. remain at $12.50, and quantity will remain at 50 units.
d
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If Maryanne completely smooths consumption over her lifetime, for every $1,000 increase in disposable income, she will use ________ for consumption each year. A) $100 B) $333 C) $667 D) $750
One problem with keeping the CPI basket fixed is it:
A. doesn't accurately isolate price changes from behavior changes. B. can't properly predict when prices will change. C. doesn't allow for changes in people's preferences over time. D. doesn't really capture what a typical household may purchase in a base year.
A perfectly elastic demand curve is
A. a downward sloping straight line. B. horizontal. C. a rectangular hyperbola. D. vertical.
The demand by all the consumers of a given good or service is the ________ for the good or service
A) market demand B) quantity demanded C) law of demand D) scheduled demand