A radio ad conveys the hours a store is open. By doing this, the ad ______.
a. creates a more elastic demand curve.
b. creates a demonstration effect
c. communicates important information
d. communicates misleading information
c. communicates important information
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Suppose that the quantity demanded for cars exceeds the quantity supplied of cars. We would expect that
A. the demand will decrease (demand will shift to the left to meet the supply. B. the price of cars will increase. C. the supply will increase (supply will shift to the right to meet the demand. D. the price of cars will decrease.
If the United States imposes a tariff on foreign chocolate, how are U.S. buyers of chocolate affected?
A) Their demand for chocolate increases because the U.S. production chocolate increases. B) The price they pay for chocolate falls, but they consume less chocolate because less is imported. C) The quantity they consume is unchanged. D) The price they pay for chocolate falls, and they consume more chocolate. E) The price they pay for chocolate rises.
Property rights facilitate the development of trade
Indicate whether the statement is true or false
The quantitative difference between areas Q1bcQ2 and p1p2ba in the diagram measures
A. marginal cost. B. total revenue. C. marginal revenue. D. average revenue