In a typical college classroom without a seating chart, dozens of students nevertheless occupy classroom seats with a minimum of confusion and disorder. Economics explains the orderly process of seat selection by assuming students

A) engage in entirely random decisions, from which only divine intervention can generate order in the classroom.
B) follow a simple, perhaps even unwritten, rule, such as "seats belong to the person who first occupies them."
C) know all the consequences of their actions, and thus purposefully create an orderly classroom seating assignment even if the professor doesn't require one.
D) trick question: economics cannot deduce any sensible scientific claims about the behavior of college students.

B

Economics

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If consumers' confidence in the economy rises

A) aggregate demand will shift rightward and the price level will rise. B) aggregate demand will shift leftward and the price level will fall. C) aggregate demand will shift rightward and the price level will fall. D) aggregate demand will shift leftward and the price level will rise.

Economics

If the price increases by 20 percent and the quantity supplied increases by 40 percent, what does the elasticity of supply equal?

What will be an ideal response?

Economics