Out of the three products, which product has a unitary elastic demand curve?
a. Cigarettes
b. Alcohol
c. Sodas
d. None of the above
b
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Suppose the aggregate demand for housing in the U.S. includes a substantial speculative component. What happens of the expectations of speculators change, and they believe housing prices will not increase in the future?
A) The aggregate demand curve shifts leftward, and the equilibrium market price declines. B) The aggregate demand curve shifts leftward, and the equilibrium market price increases. C) The speculative demand curve shifts leftward, but the aggregate demand curve is unchanged. D) There is no change in the current demand for housing because speculators' expectations are based on future events.
A bank's total reserves consist of
A. vault cash and Treasury bills. B. vault cash only. C. all assets. D. vault cash and reserve deposits held at a regional Federal Reserve Bank.
Total surplus is
a. equal to consumer surplus minus producer surplus. b. equal to the total value to buyers minus the total cost to sellers. c. equal to consumers' willingness to pay plus producers' cost. d. greater than the sum of consumer surplus plus producer surplus.
A common characteristic of oligopolies is:
a. independent pricing decisions. b. interdependence in pricing decisions. c. few or no plant-level economies of scale. d. low industry concentration.