The graph below shows two indifference curves and QR and QS represent different budget lines. A change in the equilibrium position on the diagram from point 1 to point 2 could result, other things being equal, from:
A. An increase in the price of B
B. A decrease in the price of A
C. A decrease in the consumer's money income
D. An equal percentage increase in the consumer's money income and in the price of B
A. An increase in the price of B
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A liability for a commercial bank is its demand deposits
a. true b. false
Required reserves are the portion of deposits banks are required to hold and not lend to customers
Indicate whether the statement is true or false
An important determinant of the price elasticity of supply is the extent to which
A) the commodity is a luxury or a necessity. B) the demand for it is both price and income elastic. C) the product has many complements or substitutes. D) production requires the use of particularly scarce or specialized resources.
When the market price is set below the equilibrium price:
A. the market is not efficient. B. total surplus is not maximized. C. producer surplus is decreased. D. All of these are true.