Suppose the marginal cost of producing a good falls so that the marginal social cost curve shifts downward. Then the efficient quantity to produce of that product
A) increases.
B) does not change.
C) decreases.
D) could increase, stay the same, or decrease.
A
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Tariff accounts for 32% of the total government revenue in the U.K. and only 1.2% in India
a. True b. False Indicate whether the statement is true or false
A real depreciation will tend to cause
A) a reduction in exports. B) an increase in imports. C) a reduction in net exports. D) an increase in demand for domestic goods. E) none of the above
A currency appreciation should _______ net exports, and, therefore, _________aggregate demand.
A. reduce; decrease B. reduce; reduce C. increase; decrease. D. None of the above is correct.
At a price of $4 per unit, Gadgets Inc. is willing to supply 20,000 gadgets, while United Gadgets is willing to supply 10,000 gadgets. If the price were to rise to $8 per unit, their respective quantities supplied would rise to 45,000 and 25,000. If these are the only two firms supplying gadgets, what is the elasticity of supply in the market for gadgets?
A. 1.2 B. 1.0 C. .833 D. .80