Demand tends to be:
A. more inelastic in the short term than in the long term.
B. more elastic in the short term than in the long term.
C. equally elastic in the short term and in the long term.
D. None of the statements is correct.
Answer: A
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A perfectly competitive wheat farmer in a constant-cost industry produces 1,000 bushels of wheat at a total cost of $50,000. The prevailing market price is $48. What will happen to the market price of wheat in the long run?
A) The price remains constant at $48. B) The price rises above $48. C) The price falls below $48. D) There is insufficient information to answer the question.
Vertical contracts between manufacturers and retailers often aim to
a. Prevent the manufacturer from upstream price discrimination b. Reward the retailer for undertaking the risk inherent in introducing a new product c. Serve as a "signal" of the retailer's belief of the likely success of his product d. All of the above
(1)(2)(3)(4)(5)QdQdPriceQsQs5040$1070806050960708060850609070740501008063040Refer to the above table. In relation to column (3), a change from column (4) to column (5) would most likely be caused by:
A. government placing an excise tax on the good. B. an increase in consumer income. C. an improvement in production technology. D. an increase in input prices.
Refer to the information provided in Figure 28.7 below to answer the question(s) that follow.
Figure 28.7Refer to Figure 28.7. Suppose the economy is initially at Point A. An expansionary fiscal policy moves the economy to Point ________ in the short run.
A. E B. B C. C D. D