Which of the following is explained by the price elasticity of demand for a product?
a. The effect of changes in price on the supply of the product
b. The effect of changes in quantity on the supply of the product
c. The effect of changes in quantity on the price of the product
d. The effect of changes in price on the quantity demanded of the product
e. The effect of changes in price on the quantity supplied of the product
d
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If the marginal propensity to save is 0.35, the multiplier is 2.86
Indicate whether the statement is true or false
The Federal Reserve looks at the threshold of capital utilization rates as an indicator of inflationary pressures
Indicate whether the statement is true or false
When a tariff is imposed on an imported good, the prices of the similar products produced within the country also increase.
Answer the following statement true (T) or false (F)
If the price of a good falls, the marginal utility per dollar spent on that good:
A. also falls. B. stays the same. C. rises. D. will rise or fall, depending on the consumer.