If a product has an inelastic demand, then:
a. there is probably a long time period under consideration.
b. as price increases, total revenue to producers decreases.
c. an increase in the price will decrease total consumer expenditures.
d. there are probably many complements for the good.
e. there are probably few substitutes for the good.
e
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Government can intervene in the market through
a. Price floors b. Price ceilings c. Taxes d. All the above
In the long run, supply curves tend to be relatively elastic. This is because
a. demand is also elastic in the long run b. in the short run, fixed costs are fixed c. in the long run, suppliers can adjust the quantities of all resources used in production d. in the long run, suppliers can eliminate inefficient resources e. in the long run, suppliers will enter and exit other industries
Currently most developed countries meet or exceed the U.N.'s Millennium Aid Goal for donor country GDP.
Answer the following statement true (T) or false (F)
If financial markets didn't exist:
A. liquidity would diminish and returns would be lower. B. liquidity would diminish, reducing the flow of funds between borrowers and savers. C. required returns would be lower since fewer instruments would trade. D. more funds would flow directly between borrowers and savers.