The inelastic demand for agricultural products means that a(n):
A. Decrease in price will increase farm incomes
B. Increase in price will decrease farm incomes
C. Decrease in price will decrease farm incomes
D. Increase in price will not change farm incomes
C. Decrease in price will decrease farm incomes
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What is the effect of the establishment of a price ceiling below the equilibrium price?
a. increased production leading to excesses b. increased demand leading to shortages c. more goods available to consumers d. fewer buyers looking to purchase goods
In contrast to a perfectly competitive firm, a monopolist operates in the long run
A. at a price higher than marginal cost. B. with a profit equal to zero. C. at an efficient level of output. D. at the minimum point on its average total cost curve.
In an idealized laissez-faire world, the distribution of products is
A. the most efficient. B. the most fair. C. purely random. D. unpredictable.
If $1 was equivalent to 120 Japanese yen in 2008 and 125 Japanese yen in 2010, it implies in 2010, there was:
a. a depreciation of the dollar against the yen. b. a depreciation of the yen against the dollar. c. an appreciation of the yen against the dollar. d. no change in the value of yen, but the dollar had weakened. e. no change in the value of dollar, but the yen had strengthened.