If the demand curve is a straight line and has the normal negative slope, then as quantity demanded increases, demand
a.
becomes more elastic
b.
becomes more inelastic
c.
is unitary elastic
d.
rises and then falls
e.
is an inverse function of supply
b
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An increase in consumer confidence will
A) not change autonomous consumption and rotate the consumption function downward. B) not change autonomous consumption and rotate the consumption function upward. C) increase autonomous consumption and shift the consumption function upward. D) decrease autonomous consumption and shift the consumption function downward.
A shift in the production possibilities frontier curve will occur as a result of all of the following except
a. a change in the endowment of resources. b. a change in technology. c. a change in the production of one good relative to another good. d. a change in land, labor, or capital.
If resources are used efficiently, then ________
A) marginal social cost is minimized B) consumer surplus plus producer surplus is maximized C) consumer surplus equals producer surplus D) producer surplus is maximized
Assume that you own a small boutique hotel. In an attempt to raise revenue, you reduce your rates by 20 percent. However, your revenue falls. What does this indicate about the demand for your boutique hotel rooms?
A) Demand is inelastic. B) Boutique hotel rooms are inferior goods. C) The demand curve for your hotel rooms is vertical. D) Demand is elastic.