Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. If the price of burger increases,
A) Max will buy less burger and more chicken.
B) Max will buy less burger and the same quantity of chicken.
C) Max will buy less of both meats.
D) More information is needed to answer the question.
D
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The long-run Phillips curve is ________ curve, and moving along the long-run Phillips curve, an increase in the inflation rate is associated with ________ in the natural unemployment rate
A) a downward sloping; no change B) a vertical; no change C) a downward sloping; a decrease D) a horizontal; no change E) an upward sloping; an increase
The demand curve is kinked in oligopoly theory because firms will do which of the following?
a. Raise and lower prices together b. Raise prices together but not lower prices together c. Lower prices together and sometimes raise prices together d. Lower prices together only
Which of the following would increase aggregate demand?
What will be an ideal response?
The price elasticity of demand is a measure of the:
A. Effect of changes in demand on the price B. Relationship between price and profitability C. Responsiveness of buyers of a good to changes in its price D. Sensitivity of a good's price to changes in demand