When the American League instituted designated batters (that is, pitchers were exempt from batting), the shadow prices of throwing bean-balls (a pitch aimed at the batter's head):
A. did not change.
B. fell.
C. rose.
D. disappeared.
Answer: B
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Market failures ________ and generate ________
A) compel the government to act; regulations B) create monopolies or oligopolies; deadweight loss C) reduce economic efficiency; deadweight loss D) create deadweight loss; externalities
Elasticity is a useful tool in learning more about the character of demand. It depicts
a. the way to find market equilibrium b. a ratio of percentage changes c. how easily prices adjust to changing market (supply and demand) conditions d. how price changes as quantity demanded changes e. how consumers react to shifts in demand
How much money do you need to put into a savings account that pays 10% interest compounded annually to have $10,000 in ten years?
a. $3,855.43 b. $2,881.22 c. $1, 926. 85 d. $ 3,026. 77
In this consumer surplus graph, why is the market demand curve smooth?
a. Demand is artificially set by government price controls.
b. One buyer sets the demand for the entire market.
c. The buyers all share identical levels of willingness to pay.
d. There are many buyers with unique levels of willingness to pay.