Factor markets are different from product markets in an important way because
a. equilibrium is the exception, and not the rule, in factor markets.
b. the demand for a factor of production is a derived demand.
c. the demand for a factor of production is likely to be upward sloping, in violation of the law of demand.
d. All of the above are correct.
b
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A fall in the price of X from $12 to $8 causes an increase in the quantity of Y demanded from 900 to 1,100 units. What is the cross elasticity of demand between X and Y?
A) 0.5 B) -0.5 C) 2 D) -2
One likely result of a price ceiling is that
a. an excess supply of the good results b. the price would be above the equilibrium price c. the price would be the equilibrium price d. the good must be rationed e. the supply curve shifts to the right
As the price level falls,
a. the exchange rate falls, so net exports fall. b. the exchange rate falls, so net exports rise. c. the exchange rate rises, so net exports fall. d. the exchange rate rises, so net exports rise.
How are normal goods and inferior goods similar? How are they different?
What will be an ideal response?