Suppose that the cost of the CPI basket of goods and services rises from $137 in 2010, which is the base year, to $159 in 2011. The CPI in 2011 is ________ and the inflation rate from 2010 to 2011 is ________
A) 86; 14 percent
B) 86; 22 percent
C) 116; 22 percent
D) 116; 16 percent
E) There is not enough information to answer this question.
C
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An increase in the number of fast-food restaurants
A) raises the price of fast-food meals. B) increases the demand for fast-food meals. C) increases the supply of fast-food meals. D) increases the demand for substitutes for fast-food meals.
As time passes after a change in the price, the supply of a good or service
A) becomes more elastic. B) becomes less elastic. C) initially becomes more elastic and then becomes less elastic. D) initially becomes less elastic and then becomes more elastic.
Bill created a new software program he is willing to sell for $200 . He sells his first copy and enjoys a producer surplus of $150 . What is the price paid for the software?
a. $50. b. $150. c. $200. d. $350.
If positive economic profit exists in monopolistic competition, there is:
A) incentive for new firms to enter. B) a motive for existing firms to increase prices. C) proof that advertising works. D) a motive for existing firms to decrease prices. E) product differentiation.