In measuring the sensitivity of demand, the
a. price and income elasticities refer to movements along the demand curve; other elasticities refer to shifts of the entire demand curve
b. price and cross-price elasticities analyze movements along the demand curve; other elasticities refer to shifts of the entire demand curve
c. income and cross-price elasticities refer to movements along the demand curve; price elasticity refers to shifts of the entire demand curve
d. price elasticity refers to movements along the demand curve; income and cross-price elasticities refer to shifts of the entire demand curve
e. income elasticity refers to movements along the demand curve; other elasticities refer to shifts of the entire demand curve
D
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Answer the following statement(s) true (T) or false (F)
1. Small, medium, and large taxes all affect deadweight loss equally. 2. A large increase in tax can reduce the quantity exchanged to the point where there is very little tax revenue raised. 3. Subsidies create welfare gains. 4. Price ceilings create deadweight losses. 5. Deficiency payment programs are designed to help poor teachers.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point E to Point B. This could be explained by
A. a change in society's preferences for hybrid cars versus motorcycles. B. an increase in economic growth. C. an increase in unemployment. D. a reduction in unemployment.