You hear that the price of gasoline will fall 20 cents overnight. This will tend to
A) increase your demand today.
B) decrease your demand tomorrow.
C) increase your demand tomorrow.
D) leave your demand unchanged both today and tomorrow, especially if it is highly elastic to changes in prices.
C
Economics
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A fiscal policy action to close an expansionary gap is to:
A. decrease taxes. B. increase the marginal propensity to consume. C. increase transfer payments. D. decrease government purchases.
Economics
If regulators were to force a natural monopoly to set the price of its product equal to its marginal cost of production (in order to encourage economically efficient use of the product), the natural monopoly will
A. understate its true costs of production. B. shut down immediately. C. earn an economic loss. D. earn a normal profit.
Economics