Suppose water rates in Podunk rise by 100%. The water consumption in Podunk will tend to
A) remain unchanged, because water is a necessity of life.
B) decrease substantially overnight.
C) decrease more substantially over time, as residents discover substitutes for water.
D) decrease, and therefore lead to a lower price of water.
C
You might also like to view...
Gasoline prices increase by 50 percent and other things remain the same. As a result, there is
A) an increase in the demand for gasoline. B) a decrease in the demand for gasoline. C) no change in the quantity of gasoline demanded. D) a decrease in the quantity of gasoline demanded. E) More information is needed to determine if the demand for gasoline increases or decreases.
Other things being equal, the behavior of a monopolist differs from that of a competitive industry in that
A) the monopolist does not attempt to maximize economic profit. B) the monopolist hires more labor. C) the monopolist restricts output and hires less labor. D) the monopolist must consider fixed costs in deciding the optimal level of output to produce in the short run.
Differing productivities, differences in working conditions, and localized employer market power are some of the reasons which explain differences in individual wages
Indicate whether the statement is true or false
Which of the following statements about the U.S. balance of payments in 2013 is true?
a. In the third quarter of 2013, the services account recorded a deficit of $25 million. b. In the third quarter of 2013, the current account showed a surplus of $174,091 million. c. In the third quarter of 2013, the merchandise account showed a surplus of $179,457 million. d. In the third quarter of 2013, the merchandise account showed a deficit of $179,457 million. e. In the third quarter of 2013, the services account recorded a deficit of $38,175 million.