U.S. automobile manufacturers chose not to switch to producing subcompact cars for which of the following reasons?
(a) They did not perceive the U.S. demand for subcompacts as permanent.
(b) This switch was not economically feasible in the long run.
(c) Government policy prevented them from doing so.
(d) All of the above.
(a)
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If the price of gasoline decreases, what will be the impact in the market for public transportation?
A) The quantity of public transportation demanded increases. B) The quantity of public transportation demanded decreases. C) The demand curve for public transportation shifts to the left. D) The demand curve for public transportation shifts to the right.
Assume that when the price of good X is $7, quantity demanded is 25. When price is increased to $9, quantity demanded falls to 20. Based on this information, over the range in question demand is elastic
Indicate whether the statement is true or false