Other things being equal, the increase in rents that occurs after rent controls are abolished is smaller when
A) the own price elasticity of demand for rental homes is price inelastic.
B) the own price elasticity of demand for rental homes is price elastic.
C) the own price elasticity of demand for rental homes has unitary price elasticity.
D) rented homes and owned homes are complements.
E) rented homes and owned homes are substitutes.
B
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Helga owns Viking, Inc, started with her $100,000 inheritance. Helga's accountant informs her that her firm earned a profit of $100,000 last year, and that if she chooses to invest the money she can expect a 10% return. If Helga did not run Viking, she would not work. What were Helga's economic profits last year?
a. Zero b. $100,000 c. $90,000 d. $95,000
If beginning stocks for 2014/2015 are adjusted upward in the May (2014) WASDE report, then the estimate of the supply of corn for 2014/15:
a. Is decreased b. Is increased c. Is not affected by the adjustment
If the quantity of money supplied is greater than the quantity of money demanded, then the
A) price of financial assets falls. B) money supply decreases. C) nominal interest rate rises. D) nominal interest rate falls. E) price level falls.
Any movement along an existing production possibilities curve will
a. increase the production of one good while decreasing the production of the other. b. increase the production of both goods c. increase efficiency. d. increase employment.