If the demand for good A is more elastic than the demand for good B, a small increase in supply in both markets will cause
a. a much greater decrease in price for good A than for good B
b. a much greater decrease in price for good B than for good A
c. the price will decrease by the same amount in both markets
d. only the price of good B will decrease
e. only the price of good A will decrease
B
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Which growth theory models growth as a perpetual motion machine?
A) new growth theory B) classical growth theory C) neoclassical growth theory D) all growth theories model growth as a perpetual motion machine
The figure above shows a typical perfectly competitive corn farm, whose marginal cost curve is MC and average total cost curve is ATC. The market is initially in a long-run equilibrium, where the price is $3.00 per bushel
Then, the market demand for corn decreases and, in the short run, the price falls to $2.50 per bushel. In the new short-run equilibrium, the farm produces ________ bushels of corn and sells corn at ________ per bushel. A) 250,000; $3.00 B) 250,000; $2.50 C) 300,000; $2.50 D) 200,000; $2.50
Within the Keynesian model, the multiplier effect tends to
a. smooth out the up- and down- swings of the business cycle. b. promote price stability. c. magnify small changes in spending into much larger changes in output and employment. d. reduce the impact of an increase in investment on output and employment.
Studies have found that there is a relationship between height and productivity. Briefly explain