On the graph above, movement from point ________ to point ________ might occur if there is a negative demand shock, followed by updating of expected inflation
A) F; G
B) H; I
C) H; F
D) F; H
E) none of the above
C
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Which of the following describes the store of value function of money?
A) noting that Audible.com sells downloadable audio books for $10 per book B) making a monthly payment toward your car loan C) paying $30 for a haircut D) putting away $50 each month into your savings account
If the demand function for a particular good is Q = 50 ? 4P, then demand at a price of $10 is:
A. unit elastic. B. elastic. C. inelastic. D. Elasticity cannot be determined.
With a given level of money income, when the price of a product that a consumer buys declines, the purchasing power of your money income
A) decreases. B) increases. C) is unchanged. D) can increase or decreases depending on the goods being consumed.
Perfectly inelastic demand means that consumers
A) are willing to buy any quantity of the good at a given price, but none at higher prices. B) decrease their consumption as price rises. C) increase their consumption as price rises. D) will buy a certain quantity, regardless of price. E) will buy a huge, almost infinite amount more, if the price falls just a little.