Along a downward-sloping straight-line demand curve,
A. demand is perfectly elastic when price is zero.
B. demand is unit elastic at all prices.
C. demand is very inelastic at high prices but becomes more elastic as price decreases.
D. demand is very elastic at high prices but becomes less elastic as price decreases.
D. demand is very elastic at high prices but becomes less elastic as price decreases.
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GDP data alluding to the start of a recession in January 2015 was published and analyzed by the Fed in July 2015
The Fed held meetings to formulate a monetary policy to deal with the recession, and then it enacted the chosen policy in September 2015. It was December 2015 before the policy actually began to affect the economy. The three-month period from September 2015 to December 2015 exemplifies a(n) A) recognition lag. B) implementation lag. C) impact lag. D) liquidity lag.
Assume that there is a shortage of lobster and that for whatever reason prices have not risen to choke off the excess demand
Instead, the government has exhorted people to voluntary refrain from lobster consumption to "maintain a balance between supply and demand." Assume that the temporary public service announcements are "effective" and the public reduces its consumption of lobster. Explain using supply and demand analysis what should happen to the equilibrium quantity of lobster and its equilibrium price. Why would this plan not have much of an impact on the lobster market in the long run?
For an upward-sloping labor supply curve, the quantity of labor supplied varies directly, ceteris paribus, with
A. The derived demand for labor. B. Payroll taxes. C. The wage rate. D. The value of leisure time.
Consider a town with three residents. The residents' demand curves for various acres of a public park are shown below.
Suppose the city receives a grant that pays one half of the cost of each acre the city buys. If the cost of land is $28 per acre, the optimal park size is
A. 6. B. 2. C. 4. D. 8.