(Last Word) Based on the concept of price elasticity of demand, which of the following cases is most likely to occur?
A. Golf courses charging higher prices for golf during the week than on weekends.
B. Movie theaters charging higher prices for senior citizens.
C. Colleges charging lower tuition for low-income students.
D. Airlines charging lower fares for business travelers.
Answer: C
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According to the quantity theory of money, a 3 percent increase in the money supply
a. causes the price level to rise by 3 percent. b. causes the price level to rise by less than 3 percent. c. leaves the price level unchanged. d. causes the price level to fall by 3 percent.
Consumers are sovereign when
A) prices are decided by sellers. B) a few consumers exercise coercion on sellers and other consumers. C) they can prevent market failure. D) they have the freedom to decide what they wish to purchase.