What are the likely trends for the demand for and the supply of resources in the future?
What will be an ideal response?
The demand for resources appears to be leveling off or trending downward because of the expected rapid decline in population growth in this century. This fall in growth means that resource consumption per person is expected to level off or decline. The demand trends and the long-run decline in resource commodity prices indicate that resource supplies have been able to grow to meet and exceed demand.
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By reducing prices, competition encourages ________ transactions, which generates ________ cooperative surplus
A) more; more B) more; less C) less; more D) less; less
The statement, “Supply creates its own demand,” is also known as
a. Keynes’ law. b. neoclassical economics. c. Say’s law. d. Adam Smith’s law.
Suppose the value of income elasticity of demand for a private college education is equal to 1.5 . This means that
a. every $1 increase in income provides an incentive for a $1.50 increase in expenditures on private college education b. every $1.50 increase in income provides an incentive for a $1 increase in expenditures on private college education c. a 10 percent increase in income causes a 15 percent increase in the quantity of private college education purchased d. a 15 percent increase in income causes a 10 percent increase in the quantity of private college education purchased e. a 10 percent decrease in private college tuition will have a large enough income effect to increase spending on private college education by 15 percent
There are three factors that help explain the slope of the aggregate demand curve. Which two are less important? Why are they less important?