Recall the Application about food and drink pricing during "happy hour" at bars and restaurants to answer the following question(s).Recall the Application. During "happy hour," many bars and restaurants face an increase in demand for food and drink, and these establishments often cut prices during these times of increased demand. When this demand increases, the bars and restaurants face a ________ demand curve.
A. perfectly elastic
B. perfectly inelastic
C. more elastic
D. more inelastic
Answer: C
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The equilibrium wage and quantity of labor in the market for skilled workers is determined by
A) the demand and supply of labor. B) the strength of labor unions. C) the market value created by the output of these skilled workers. D) the monopsony power of firms.
Binding price floors cause a surplus in the market
a. True b. False Indicate whether the statement is true or false
The conclusion that a monopoly results in lower output and higher prices than perfect competition relies on the assumption that
A. the demand curve for a monopoly is horizontal. B. elasticity of demand varies along the market demand curve. C. consumers are ignorant of the effects of monopoly. D. the costs of production are the same whether the industry is perfectly competitive or a monopoly.
Suppose the Inkuyo family invests in the local bottling corporation. Albert, Brad, Carol, and Diana each invest separately. At the end of a very successful quarter, Carol and Brad receive a payment from the corporation equal to 10 percent of their investment. Albert receives 7 percent, but is paid before Carol or Brad. Diana receives 6 percent. If Carol and Brad made riskier investments than
either Albert or Diana, they most likely invested in a. common stock b. fixed-yield stocks c. indexed stocks d. corporate bonds e. low-yield dividends