Consumers are often somewhat insensitive to changes in the price of table salt because
A) the proportion of their budget spent on salt is very low.
B) there are a considerable number of good substitutes for salt, in their opinion.
C) they are not used to changes in the price of salt.
D) salt is a necessity for a complete dining experience.
E) all of the above reasons.
A
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According to Hume's price-specie-flow mechanism, a sudden increase in the money stock of Country A:
a. causes an immediate deflation in Country A. b. leads to an increase in Country A's imports relative to its exports. c. leads to an increase in Country A's exports relative to its imports. d. causes specie from the rest of the world to flow into Country A.
A market for pollution permits can efficiently allocate the right to pollute by using the forces of supply and demand
a. True b. False Indicate whether the statement is true or false