Recall the Application about craft beer and the increase in the price of hops to answer the following question(s).According to the Application, why did the price of hops increase?
What will be an ideal response?
Since 2017, craft beer production has increased. This, coupled with the fact that craft beer requires more hops, resulted in a large increase in the demand for hops. Holding the supply of hops constant, an increase in the demand for hops will result in a higher equilibrium price for hops.
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Consider three pricing strategies that the firm can pursue:
a. optimal two-part tariff pricing b. perfect price discrimination c. single-price monopoly pricing. Of these three strategies, which is least likely to benefit society as a whole? A) single-price monopoly pricing because there are mutually beneficial trades (between consumers and seller) that are not exploited B) Both perfect price discrimination and two-part tariff pricing do not benefit society because the entire consumer surplus is extracted by the producer. C) perfect price discrimination because those willing to pay higher prices are forced to subsidize those who are not D) a two-part tariff pricing because consumers have to pay a fixed fee in addition to a per-unit price
There are asymmetric incentives to support and to oppose protectionist trade policies, with the stronger incentives going to those that would seek protection
Indicate whether the statement is true or false
A testable proposition that predicts how people will react to changed circumstances is called a hypothesis
a. True b. False Indicate whether the statement is true or false
Which of the following is not true about a structural deficit?
A. It exists even if the economy is at full employment. B. It is determined in part by the actions of Congress. C. It definitely gets larger as unemployment increases. D. It is influenced by discretionary fiscal spending.