Which situation below would represent a surplus in the fertilizer market?
A. quantity demanded is 1.2 million; quantity supplied is 1.1 million.
B. market price $2.00 per bag; equilibrium price $2.25 per bag.
C. market price $2.50 per bag; equilibrium price $2.00.
D. quantity supplied this year is 25% greater than quantity supplied last year.
C. market price $2.50 per bag; equilibrium price $2.00.
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Where Es is the elasticity of supply and Ed is the own price elasticity of demand, the fraction of the tax passed on to consumers in the form of higher prices is
A) Es/(Es-Ed). B) Ed/(Es-Ed). C) Es/(Ed-Es). D) Ed/(Ed-Es). E) Ed/Es.
Which of the following will improve your supplier contracting bargaining position
a. You have a policy of always excluding at least one potential competing supplier b. You have a policy of increasing product options by never excluding a potential supplier c. Two of your suppliers merge d. Your final product that includes this component becomes more profitable
Conspicuous consumption as an ability signal
A. completely different from a prisoner's dilemma. B. characterized by lower levels of consumption. C. is more effective if the positional goods nature of consumption causes everyone to consume elaborately. D. will likely continue even if it is wasteful for all involved.
If a country pegs its currency to a foreign currency, it no longer has the ability to use monetary policy to stabilize the economy because:
A. it no longer has a central bank. B. banks will begin to hold 100 percent of their deposits in reserves. C. monetary policy must be used to keep the exchange rate's market equilibrium value at its official value. D. it must eliminate its currency from circulation and replace it with the foreign currency.