The figure illustrates the demand for magazines. Newsagents will maximize their total revenue when they ________
A) sell 375 magazines a day
B) sell as many magazines as they can
C) charge $2.50 a magazine
D) sell 750 magazines a day
A
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Which of the following would be classified as an innovation?
a. Edwin H. Land perfects the single-step photographic process in 1947. b. Polaroid markets the single-step film in 1948. c. Thomas Alva Edison perfects the incandescent lamp with carbon filament in 1879. d. In 1803, Robert Fulton constructs his first small steamboat in Paris.
Discuss the correct and incorrect economic analysis in the following statement
"If good weather in Hawaii creates a bumper crop of pineapples, the supply of pineapples will increase. This will result in a price decrease, which will then cause the supply of pineapples to decrease." What will be an ideal response?
The government of Healthyland imposes a tax on sellers of salt. The tax is $0.10 per pound. With no tax, the price of salt is $0.40 per pound. The demand for salt is perfectly inelastic and the elasticity of supply is 1.5
With the tax, the price of salt paid by buyers in Healthyland is A) $0.40 per pound. B) $0.45 per pound. C) $0.35 per pound. D) $0.50 per pound.
As the world economy becomes more integrated through globalization
A) the Fed will find it easier to conduct monetary policy. B) the Fed will have a more difficult time reaching its money supply growth rate targets. C) the Fed will rely less on open market operations and more on changing the required reserve ratio when conducting monetary policy. D) U.S. interest rates will determine world interest rates.