According to the search model, a computerized used car search service should
a. reduce the amount of search
b. not affect the amount of search
c. increase price dispersion
d. reduce price dispersion
e. lower the marginal benefit of search
D
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Which of the following does NOT influence the price elasticity of demand?
A) the amount by which the demand curve shifts when the price of another good changes B) the number of substitutes available to consumers C) the price of the good relative to total income D) the time period buyers have to respond to a price change E) whether the good is a necessity or a luxury
Consider the market for credit. When the supply of credit increases while the demand for credit remains unchanged,
A) the interest rate will decrease and the amount of credit provided in the market will increase. B) the interest rate will increase and the amount of credit provided in the market will increase. C) the interest rate will decrease and the amount of credit provided in the market will decrease. D) the interest rate will increase and the amount of credit provided in the market will decrease.
The market for unskilled labor is illustrated in the figure above. The market is in equilibrium and then a minimum wage of $3 per hour is imposed. Unemployment will equal
A) 0 hours. B) 10 million hours per year. C) 20 million hours per year. D) 30 million hours per year.
Market mechanisms are unlikely to provide
A. prices. B. nonrival goods efficiently. C. supply and demand. D. none of these answer options are correct.