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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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
Maryanne expects to work for another 30 years and expects to live another 10 years after she retires
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.