Is the following quote correct? "Here's the law of demand in a nutshell. The lower the price, the higher the quantity demanded, other things constant."
A) Yes, it is totally correct.
B) No. It would be correct if it didn't say "other things constant."
C) No, because it confuses demand and quantity demanded.
D) No, because the law of demand does not apply to nutshells.
A
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Refer to Excise Subsidy. After the subsidy is granted, producers' surplus equals
The following questions refer to the accompanying diagram which shows the effects of an excise subsidy given to firms. The initial price and quantity are P0 and Q0, respectively. After the subsidy is granted, the equilibrium quantity is Q1, firms receive the price Ps, and consumers pay the price Pd.
a. area A + B + E + H.
b. area E + H + F + I.
c. area B + C + E + H.
d. area H.
If the price elasticity of demand coefficient equals 2, this means a 10 percent increase in price will result in a 20 percent decrease in the quantity demanded
a. True b. False Indicate whether the statement is true or false
Which of the following is a key factor in opening up trade between countries?
a. Differences in consumer income b. Differences in opportunity costs c. Differences in growth rates d. Differences in consumption patterns
The new European Economic Community, after it changed its name to the European Communities, tackled two issues related to:
A) enlargement (expansion) of the European Communities and economic integration between members. B) immigration and terrorism. C) secret Nazi cells and latent communism. D) unemployment and inflation.