Which of the following would shift the investment demand curve leftward?
a. An increase in business taxes.
b. A decrease in business taxes.
c. A tax credit for new investment.
d. Firms are operating their plants at full capacity.
a
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Along a straight-line demand curve, total revenue is the highest when elasticity of demand is:
A. 1. B. between zero and 1. C. zero. D. infinity.
Recall the Application about the production of coffee in China to answer the following question(s).According to the Application, farmers in the city of Pu'er, China currently earn more growing ________ than they do growing ________.
A. tea; coffee B. rice; coffee C. coffee; tea D. rice; tea
Assume that eggnog and cookies are complements. If the price of eggnog goes up, what happens to the demand for cookies?
a. Demand for cookies increases. b. Demand for cookies decreases. c. Demand for cookies remains unchanged. d. The shift in demand will depend on the original price of cookies.
Along the Keynesian range of the aggregate supply curve, higher aggregate demand fails to stimulate output and only causes inflation
a. True b. False Indicate whether the statement is true or false