Which of the following factors will make the demand for a product relatively elastic?
A. There are few substitutes
B. The time interval considered is long
C. The good is considered a necessity
D. Purchases of the good require a small portion of consumers' budgets
B. The time interval considered is long
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Using this consumption function, the marginal propensity to consume is
A) 1.33. B) 0.75. C) $1.5 trillion. D) $2 trillion. E) 0. The figure above shows three different consumption functions for a nation.
Last year, the unemployment rate was 4 percent and the inflation rate was 3 percent. If the natural rate of unemployment is 3 percent, how do you expect inflation to change?
What will be an ideal response?
In the 1980s, banks lost many of their __________ borrowers, because these borrowers were able to sell their commercial paper to __________
A) small; savings-and-loan associations B) small; money market mutual funds C) large; savings-and-loan associations D) large; money market mutual funds
Suppose that when the price of good X falls from $6 to $4, the quantity demanded of good Y rises from 30 units to 40 units. Using the midpoint method, the cross-price elasticity of demand is
a. -0.71, and X and Y are complements. b. -1.40, and X and Y are complements. c. -0.71, and X and Y are substitutes. d. -1.40, and X and Y are substitutes.