The lower the price of the good measured on the vertical axis, other thing remaining the same, the flatter the budget line
Indicate whether the statement is true or false
FALSE
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Changes in which of the following factors do NOT shift the demand curve?
A) the price of the good B) buyers' incomes C) the price of a substitute good D) the number of buyers E) the price expected in the future
If one really believes that price spikes known as "price gouging" are due to a surge in greed among suppliers, then
A) they haven't quite mastered the economic way of thinking. B) their comfort in knowing that thousands if not millions of others agree with them is not sufficient economic evidence to conclude that their claim is correct. C) their claim implies that significant price decreases are due to a sudden reduction in greed among suppliers. D) all of the above are true.
What does it mean for a good to have a demand-determined price?
What will be an ideal response?
Most economists believe that the aggregate supply curve is
A) upward-sloping in the short run, but vertical in the long run. B) upward-sloping in the long run, but vertical in the short run. C) upward-sloping in both the short run and in the long run. D) vertical in both the short run and in the long run.