When the current price of an item is greater than the item's market clearing price
A) supply is greater than demand.
B) demand is greater than supply.
C) quantity supplied is greater than quantity demanded.
D) quantity supplied is less than quantity demanded.
C
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The income elasticity of demand for jewelry is 2. Other things equal, a 10% increase in consumer income will ________ the quantity of jewelry demanded by ________
A. decrease; 5%. B. increase; 5%. C. increase; 20%. D. decrease; 20%.
The income per capita of a country with a population of 50,000 is $4,500. Its gross domestic product is ________
A) $54,500 B) $900,000 C) $225,000,000 D) $120,000,000
Refer to the table above. Which of the following statements is true of the monopolist's marginal revenue?
A) As the monopolist reduces the price of its product from $9 to $3, the marginal revenue decreases. B) As the monopolist reduces the price of its product from $9 to $3, the marginal revenue increases. C) As the monopolist reduces the price of its product from $9 to $3, the marginal revenue first increases then decreases. D) As the monopolist reduces the price of its product from $9 to $3, the marginal revenue first decreases then increases.
Suppose we import only one good from Germany: cars. Initially, the exchange rate is $0.60 per euro. We import 150,000 cars annually, priced at 70,000 euros each. Then the euro rises to $0.625. Assuming the dollar value of our exports to Germany remains constant, we will stop moving down the J-curve and "turn the corner" to move upward along it once we import ______________ German cars per year
A) fewer than 150,000 B) fewer than 144,000 C) fewer than 93,750 D) more than 150,000 E) more than 156,250