Which of the following does NOT influence the price elasticity of demand?
A) the amount by which the demand curve shifts when the price of another good changes
B) the number of substitutes available to consumers
C) the price of the good relative to total income
D) the time period buyers have to respond to a price change
E) whether the good is a necessity or a luxury
A
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Describe and explain the relationship between the price of bonds and the interest rate
What will be an ideal response?
The quantity theory of money states that in the long run
A) the price level will not consistently rise, it will fluctuate. B) an increase in the quantity of money results in an equal percentage increase in the price level. C) a rise in the price level rises causes the quantity of money to increase. D) an increase in the quantity of money increases real GDP by a smaller percentage.
For a perfectly competitive firm in the short run, if the following conditions are true, P = MR = MC > AC, then
A. the firm is maximizing profits and is making an economic profit. B. the firm is not maximizing profits but is making an economic profit. C. the firm is not maximizing profits and is not making an economic profit. D. the firm is maximizing profits and is suffering an economic loss.
An increase in the expected future price level: a. Shifts both SRAS and LRAS to the left
b. Shifts both SRAS and LRAS to the right. c. Shifts SRAS left but leaves LRAS unchanged. d. Shifts SRAS right but leaves LRAS unchanged.