Examine Figure 36.1, which shows the market for K-12 education in an economy. If K-12 education is completely subsidized, the optimal tuition per student is

If a rise in the price of good X causes the quantity demanded of good X to fall, then

a. the Engel curve for good X is downward sloping. b. the (ordinary) demand curve for good X is downward sloping. c. the demand for good X is elastic. d. good X must be a Giffen good.

Which one of the following statements is TRUE?

A. In the short run, the level of output is determined by demand. B. In the long run, the level of output is determined by demand. C. In the long run, the aggregate supply curve is horizontal. D. Where aggregate demand and aggregate supply intersect is always the full-employment level of output.