If there is an improvement in technology that affects only Aggregate Supply and a nation's wealth falls due to sagging stock market, then:
a. Aggregate demand falls, and aggregate supply rises.
b. Aggregate demand and aggregate supply rise.
c. Aggregate demand rises, and aggregate supply falls.
d. Neither aggregate demand nor aggregate supply change.
e. None of the above.
.A
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In recent years the cost of producing wines in the U.S. has increased largely due to rising rents for vineyards. At the same time, more and more Americans prefer wine over beer
Which of the following best explains the effect of these events in the wine market? A) The supply curve has shifted to the left and the demand curve has shifted to the right. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity. B) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity. C) The supply curve has shifted to the left and the demand curve has shifted to the right. As a result there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price. D) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in both the equilibrium price and the equilibrium quantity.
The above figure supports all of the following statements regarding health care EXCEPT
A) the demand for health care is insensitive to price changes; as the price goes up, so does the quantity demanded. B) if all medical expenses were paid for by third parties, the quantity demanded would increase tremendously. C) due to third party payments, patients demand a higher quantity of health care services per year. D) the lower the deductible, the greater is the quantity demanded of health care services per year.
_____ is the theory that was popular before _____ changed the face of economics post Great Depression in the 1930s
a. Classical economics; Milton Friedman b. Keynesian economics; Monetarists c. Classical economics; Keynes d. Monetarist economics; Adam Smith e. Keynesian economics; Milton Friedman
Generally, expenses on toothpaste are a small part of a consumer's budget, so the demand for toothpaste is more likely to be
A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic.