Microeconomics > QUESTIONS & ANSWERS > Sophia Macro Unit 1 Challenge 2 Latest 2022 Rated A (All)

Sophia Macro Unit 1 Challenge 2 Latest 2022 Rated A

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Movements along the supply curve are a result of changes in __________. b.) price An increase in income, and thus consumption, would cause which of the following to occur? d.) The demand curve to... shift to the right When quantity supplied and quantity demanded are the same, a market is said to be in __________. d.) equilibrium If income elasticity is positive, but less than one, this good is considered to be a __________. b.) normal good Cross-price elasticity refers to changes in demand that happen due to changes in price of related goods. If this value is negative for two goods or services, then they are __________. If this value is positive, then they are __________. b.) complementary; substitutes When a good is unit elastic, the absolute value of the elasticity is ___________. d.) equal to one If a price floor is set below the equilibrium price (P) above, which of the following will occur? a.) Nothing, as this price floor would not be binding. This study source was downloaded by 100000831988016 from CourseHero.com on 06-22-2022 16:02:35 GMT -05:00 https://www.coursehero.com/file/72126095/Macro-Unit-1-Challange-2docx/ In 2007, the government attempted to end inflation by enforcing a price freeze on basic commodities such as corn, sugar and eggs. This led to runs on grocery stores and other places that sold such items, since in some cases the prices were rolled back to almost 50% of what they had been. A shortage occurred because people rushed to stock up on these items as much as they could. In this example, the freeze on prices is known as a government enforced __________, with businesses forbidden to charge more than the price set by the government. These government enforced price constraints are binding because they are lower than the __________. c.) price ceiling; equilibrium price Minimum wage is a type of __________ that enforces a lower limit on wages. When these occur, they create a __________ of labor, because there are more people who want to be paid at this rate than there are firms that are willing to pay them. c.) price floor; surplus When the government pays money to encourage production, this is known as a __________. a.) subsidy If demand is inelastic, the _________ will bear more of the burden of the tax. b.) consumer What happens on a graph for a good when a tax is imposed? c.) The supply curve shifts to the left. The price for borrowing money is known as the __________. b.) interest rate This study source was downloaded by 100000831988016 from CourseHero.com on 06-22-2022 16:02:35 GMT -05:00 https://www.coursehero.com/file/72126095/Macro-Unit-1-Challange-2docx/ The value of an item in monetary terms at a specific point in time is the __________. b.) price When prices increase over time, this is known as __________. b.) inflation Jim can't find a job because the store where he was manager just closed due to a recession. What type of unemployment does this represent? c.) Cyclical Unemployment as a result of people's skills not [Show More]

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