If all of the following examples are elastic, which one will most likely have an increase of revenue?
a. The price of shower curtains rises.
b. The price of cell phones falls.
c. The price of raspberries remains constant.
d. The quantity supplied of skin moisturizer remains constant.
Answer: v
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Refer to above figure. Suppose the European government provides Airbus with a subsidy of $4 for each airplane sold, and that the subsidy convinces Boeing to exit the Hungarian market. Now Airbus would be the monopolist in this market
What price would they charge, and what would be their total profits?
Which of the following monetary policy tools is more effective when the economy faces the interest rate zero-lower-bound problem?
A) open market operation B) discount policy C) required reserve ratio D) the Fed's liquidity provision
The study of how people choose between the alternatives available to them is
A. definition of economics B. model of demand C. theory of opportunity costs D. method of distinguishing between microeconomics and macroeconomics.
If the marginal tax rate equals the average tax rate, the tax would be
A. proportional. B. regressive. C. progressive. D. uniform.