An unexpected event like a drought in the Midwest causing a loss of wheat crops would be an example of
a. a stagflation shock.
b. a supply shock.
c. an input shock.
d. a productivity shock.
b. a supply shock.
Economics
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Suppose the price elasticity of demand for Mexican food is 1.23 and the price elasticity of supply is 0.47. If the government imposes a tax on Mexican food, do buyers or sellers pay most of the tax? Why?
What will be an ideal response?
Economics
Economics studies how decision makers use scarce resources to satisfy unlimited wants
a. True b. False
Economics