From 1970 to 2010, the real price of a college education increased, and total enrollment increased. Which of the following could have caused this increase in price and enrollment?
A) A shift to the right in the supply curve for college education and a shift to the left in the demand curve for college education.
B) A shift to the left in the supply curve for college education and a shift to the right in the demand curve for college education.
C) A shift to the left in the supply curve for college education and a shift to the left in the demand curve for college education.
D) none of the above
B
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In a perfectly competitive market a firm's rental rate for a machine (v) will be given by: v = P(r + d) where r is the prevailing rate of interest and d is the depreciation rate. In this formula P represents a. the present market price of the machine
b. the initial purchase price of the machine (assuming this differs from its present market price. c. the price of the firm's product. d. the depreciated value of the machine.
If economists estimate the price elasticity of demand to be 0.75 for good X and 1.25 for good Y, then the government can raise the most revenue by taxing good Y
Indicate whether the statement is true or false