Other things remaining the same, if a large part of the population decided against having soda for health reasons, there would be a(n):
a. increase in the quantity of soda supplied.
b. increase in the quantity supplied of complements like fries and burgers.
c. decrease in the price of soda.
d. rightward shift of the demand curve for soda.
e. decrease in the quantity demanded of substitutes like mineral water.
c
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Joan has the following assets and liabilities:Credit Card balance$1000Cash$200Government bonds$3,000Checking$300Car loan balance$10,000Car$15,000What is Joan's money demand?
A. $500 B. $200 C. $300 D. $1,500
Signals can help prevent adverse selection as long as a false signal is costly to the person sending it
Indicate whether the statement is true or false
Consider a good with a price elasticity equal to 1 at every point on its demand curve. Which of the following statements is correct?
a. Total revenue always rises exactly in proportion to a drop in the price. b. Total revenue always rises exactly in proportion to a rise in the price. c. Total revenue does not change if the price changes. d. Total revenue drops to zero whenever the price rises. e. Total revenue always doubles if the price drops.
If a country has a trade deficit, it:
A. Imports more than it exports. B. Does not export any goods. C. Is more dependent on trade than other countries. D. Sells more goods to foreigners than it buys from them.