Currently there is a market demand for toothpaste with baking soda in it. New medical studies show that baking soda has health benefits beyond clean teeth. After these studies are published, the market demand is such that at any price, consumers buy 10 more tubes of toothpaste than they used to. This is a parallel, rightward shift of the demand curve. Which of the following statements is true?
a. Because the curves are parallel, the elasticities don't change.
b. Despite the fact that the curves are parallel, elasticity has increased.
c. Even though the curves are parallel, the new one is more inelastic.
d. There is no relationship between the curves and their elasticities.
e. Elasticities on the new demand curve have increased at low prices and decreased at high prices.
C
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A strike at the Financial News in London shut down its production, and the sales of a competing newspaper, the Broad Street Journal, increased dramatically, with no increase in price. Based upon this, what can you say about the Broad Street Journal’s supply curve?
A. Its supply curve is vertical. B. Its supply curve is horizontal. C. Its supply curve has shifted. D. Its supply curve has a positive slope.
For spring break, Melanie will either stay home or go to Daytona Beach. At home, Melanie pays $10 per day for food and earns $90 a day at her job. At Daytona Beach, Melanie will stay with friends and so has no lodging cost
She will pay $20 per day for food. In terms of dollars, Melanie's opportunity cost per day of going to Daytona Beach is how much?
Refer to Figure 12.4. As a result of the monetary policy taking effect after the housing bubble had already burst, real GDP will be ________ potential GDP and the rate of inflation will be ________ the rate of inflation when the economy was initially
in equilibrium. A) greater than; greater than B) greater than; less than C) less than; less than D) less than; equal to
Economists consider price discrimination to always be undesirable.
Answer the following statement true (T) or false (F)