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Question
After Sushmita lost her job, she found that she was going to the movies less often. How would she describe this to an economist?
a. Movies are a normal good and, as my income decreased, my demand curve shifted to the right.
b. Movies are an inferior good and, as my income decreased, my demand curve shifted to the right.
c. Movies are a normal good and, as my income decreased, my demand curve shifted to the left.
d. Movies are an inferior good and, as my income decreased, my demand curve shifted to the right.
e. Attending movies is a necessity.
Answer
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Related questions
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When the price elasticity of demand is elastic, a consumer is
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b. relatively unresponsive to a change in price.
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e. completely responsive to a change in price.
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Price gouging laws will usually result in ________ the product in the distressed market.
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The economic entity most likely to engage in price gouging is
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What will an individual do differently as a buyer in the black market in the long run?
a. He or she will substitute away from the product.
b. He or she will substitute toward the product.
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Q:
What is the long-run consequence of a price ceiling law?
a. A surplus will continue to exist and will grow larger over time.
b. A surplus will continue to exist and will grow smaller over time.
c. A shortage will continue to exist and will grow larger over time.
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Q:
Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
a. Prices in the legal market in the community with a binding price ceiling will rise.
b. Prices in the legal market in the community with a binding price ceiling will fall.
c. There will be shortages in the community with a binding price ceiling.
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c. The binding price ceiling will increase the likelihood that consumers will obtain needed drugs on the black market.
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c. The price and the quantity sold in the community without a nonbinding price ceiling will be the same as the price and quantity in the community with a nonbinding price ceiling.
d. There will be more shortages in the community with a binding price ceiling.
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Q:
Why would a politician find it difficult to remove a binding price ceiling?
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a. Demand for jelly will increase along with the price.
b. Demand for jelly will decrease along with the price.
c. The supply of jelly will increase and the price will decrease.
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e. The supply of jelly will decrease and the price will increase.
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Q:
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