The change in the price of a foodstuff will be greater,
A) the smaller the change in the supply of the foodstuff.
B) the greater the change in the supply of the foodstuff and the more inelastic the demand curve for the foodstuff.
C) the lesser the change in the supply of the foodstuff and the more inelastic the demand curve for the foodstuff.
D) the greater the change in the supply of the foodstuff and the more elastic the demand curve for the foodstuff.
E) the lesser the change in the supply of the foodstuff and the more elastic the demand curve for the foodstuff.
B
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Carefully define the following terms and explain their importance to the study of economics
a. specialization b. absolute advantage c. comparative advantage d. quota e. trade adjustment assistance
The future value of a deposit in a savings account will be larger
a. the longer a person waits to withdraw the funds. b. the higher the interest rate is. c. the larger the initial deposit is. d. All of the above are correct.
If consumption increases by $9 when disposable income increases by $10, the marginal propensity to consume (mpc) equals:
A. 9.0. B. 0.9. C. 1.0. D. 0.1.
Increases in the value of the product to each user, including existing users, as the total number of users rises is called:
A. Network effects B. Simultaneous consumption C. Learning by doing D. The spreading of development costs