Which of the following is not a determinant of a good's price elasticity of demand?
A) the slope of the demand curve
B) whether the good is a luxury or a necessity
C) the share of the good in the consumer's total budget
D) the passage of time
A
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Changes in which of the following shifts the aggregate supply curve?
i. the price level ii. the money wage rate iii. potential GDP A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
Assume that both high and low quality appliances are sold in the used appliance market. If we assume asymmetric information with sellers having more information regarding quality than buyers, which of the following is necessarily true? The
A) fraction of high quality appliances will be greater than under perfect knowledge. B) fractions of high and low quality appliances will be the same as with perfect information. C) fraction of high quality appliances will be less than with perfect information. D) none of the above