(Last Word) Art Buchwald's article "Squaring the Economic Circle" humorously describes how:
A. a person's decision not to buy an automobile eventually reduces many people's incomes,
including that of the person making the original decision.
B. a price increase on a single product eventually leads to rapid inflation.
C. an increase in imports eventually leads to a greater increase in exports.
D. a government tax rate increase eventually results in the government collecting less tax
revenue than before the tax rate hike.
A. a person's decision not to buy an automobile eventually reduces many people's incomes,
including that of the person making the original decision.
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The slope of a curve measures
A) only the change in the horizontal variable. B) the length of the curve. C) only the change in the vertical variable. D) the change in one variable in response to the change in the other variable.
The reason that supply and demand tend to be more price elastic over longer time periods is because
A) it takes time for households and businesses to adjust to price changes. B) some goods have longer shelf life and are reordered less often. C) firms incur costs in changing the price of goods on their shelves. D) the feedback loop from buyers to sellers takes time.