A "puppy boom" and an increase in the price of horse meat would cause the market price of dog food to
A. rise and the market output to rise, fall, or remain unchanged depending on the magnitude of the changes.
B. fall and the market output to rise, fall, or remain unchanged depending on the magnitude of the changes.
C. rise, fall, or remain unchanged depending on the magnitude of the changes, and the market output to rise.
D. rise and the market output to rise .
Answer: A
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An asset is liquid if:
A) its value does not change from day to day. B) it can be easily converted into cash without loss of value. C) it offers a positive rate of interest. D) its value is more likely to increase in future.
The income elasticity of demand measures
a. the relative certainty of future income b. how elastic supply is compared to demand c. the percent change in quantity demanded relative to the percent change in income d. the percent change in income relative to the percent change in quantity demanded e. how much income will stretch to make expected payments