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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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.
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.