Demand for a good is said to be inelastic if the quantity demanded increases substantially when the price falls by a small amount
a. True
b. False
Indicate whether the statement is true or false
False
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Because of the high cost of fuel, railroads such as Union Pacific Corp and CSX Corp have increased the price they charge to haul freight. This change means that
A) the demand curve for hauling freight has shifted leftward. B) the supply curve for hauling freight has shifted leftward. C) the demand curve for hauling freight has shifted rightward. D) the supply curve for hauling freight has shifted rightward. E) neither the supply curve nor the demand curve for hauling freight has shifted; the only change is that the price is higher.
Efficiency wages paid to workers:
A) equal the lowest pay that workers would accept. B) are wages above the lowest pay that workers would accept. C) equal the marginal revenue product of the workers. D) are wages adjusted for changes in the price level.
If bagels and croissants are substitute goods, which of the following is likely to occur if the price of bagels has decreased?
A) The demand curve for bagels shifts to the right. B) A leftward movement along the bagel demand curve. C) The demand curve for croissants shifts to the right. D) The demand curve for croissants shifts to the left.
Where pollution is concerned, if an automobile driver considers only the internal costs of his actions, he is apt to
A. be making a positive contribution to the greater community. B. use resources very carefully and in small quantities. C. drive too much and use up more scarce resources than he would if he had to cover all his costs. D. garage his car and drive very seldom.