When the demand for a good decreases, its equilibrium price ________ and equilibrium quantity ________
A) falls; increases
B) falls; does not change
C) rises; decreases
D) rises; increases
E) falls; decreases
E
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Refer to above figure. The lowest specific tariff which would be considered prohibitive is ________
Fill in the blank(s) with correct word
The North American Industry Classification System (NAICS) categorizes firms by:
A. market structure, ranking them from perfectly competitive to monopoly. B. market share, and groups firms with like market power. C. profits, since profits tend to be higher in more concentrated industries. D. type of economic activity, and groups firms with like production processes.
If a 2 percent increase in the price of product X causes the demand for product Y to increase by 6 percent, then:
A. X and Y are complements. B. X and Y are substitutes. C. X and Y are independent goods. D. the demand for X is elastic.
Suppose that in a month the price of a gallon of milk increases from $2 to $2.50. At the same time, the quantity of gallons of milk demanded decreases from 100 to 80. The price elasticity of demand for gallons of milk (calculated using the midpoint formula) is approximately:
A. 0.11. B. 0.2. C. 1. D. 1.2.