The exchange rate is volatile because
A) the demand curve and the supply curve are horizontal.
B) when a relevant factor changes, demand and supply tend to change in opposite directions.
C) the demand curve is vertical.
D) the supply curve is vertical.
E) when a relevant factor changes, demand and supply tend to change in the same direction.
B
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If income increases and the demand for bus rides decreases,
A) bus rides are a normal good. B) consumers are behaving irrationally. C) bus rides are an inferior good. D) bus rides are a substitute good. E) bus rides must be a complement good with some other good.
An increasing-cost industry is so named because of the positive slope of which curve?
A) Each firm's short-run average cost curve B) Each firm's short-run marginal cost curve C) Each firm's long-run average cost curve D) Each firm's long-run marginal cost curve E) The industry's long-run supply curve