As one moves southeast on a linear demand curve
A. demand becomes more inelastic.
B. demand becomes more elastic.
C. elasticity stays the same.
D. one cannot tell what happens to elasticity unless the slope of demand is known.
Answer: A
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Suppose the United Automobile Workers union agrees to accept lower wages for members if the automobile manufacturers lower their prices to buyers
Will the UAW's measures usually result in a larger number of cars being sold and hence more jobs for UAW members? A) No, because people only buy new cars when they need them. B) Not if the price elasticity of demand for new cars turns out to be less than one. C) Only in the unlikely event the demand for new cars is unit elastic. D) Probably not, because new car sales depend on advertising. E) Yes.
Discuss the different effects on the domestic interest rates when prices are assumed flexible and when they are assumed to be sticky
What will be an ideal response?
In the internally generated business cycle, the explanation of why cycles occur focuses on the interaction between
a. saving and investment b. the multiplier and accelerator c. movements from one phase to another d. capital stock and capital deepening e. capital-labor ratios and capital-output ratios
The vertical distance between the average total cost and average variable cost curves falls as output rises.
Answer the following statement true (T) or false (F)