If the aggregate demand curve shifts to the left in the short run then the long-run equilibrium will be at a:
A. higher price level and higher level of output.
B. higher price level and lower level of output.
C. lower price level and same level of output.
D. lower price level and lower level of output.
C. lower price level and same level of output.
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The figure above represents the behavior of total revenue as price falls along a straight-line demand curve. What is the price elasticity of demand if total revenue is given by point f?
A) Demand is inelastic. B) Demand is unit elastic. C) Demand is elastic. D) It is impossible to determine.
Discuss the factors that determine the ultimate burden of the corporate tax
What will be an ideal response?
The authors feel subsidies destroy wealth because
a. subsidies move assets from lower- to higher- valued uses b. subsidies move assets from higher- to lower- valued uses c. subsidies help producers only d. subsidies help consumers only
Hector has $1,000 a month to spend on clothing and food. The price of clothing is $50 and the price of food is $20. What is the equation for Hector's budget constraint?
A. ($50 × Clothing) / ($20 × Food) = $1,000 B. Clothing + Food < $1,000 C. $50 × Clothing + $20 × Food ? $1,000 D. $50 × Clothing + $20 × Food = $1,000