Larger volume is more likely to be associated with lower prices if the larger volume results from
A) increased demand.
B) inelastic demand.
C) increased supply.
D) elastic supply.
E) inelastic supply.
C
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In the above figure, Mark's monthly budget line for movies and plays changed, as shown by the arrow. Responding to this change, Mark probably will see
A) fewer movies and fewer plays. B) fewer movies and more plays. C) more movies and fewer plays. D) more movies and more plays.
Explain why to some game theorists, the idea of mixed strategies is appealing, and to others it is implausible
What will be an ideal response?
If the government wanted to efficiently limit the emission of Carbon Monoxide by all firms to exactly four million tons it could
A) issue rights to pollute worth four million tons and let the firms trade those rights in a market. B) appeal to firms' environmental conscience to pollute less. C) subsidize production. D) rely on the Coase Theorem.
Suppose a firm has an annual budget of $200,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 in rented property, and $35,000 in interest costs on capital. The owner/manager does not choose to pay himself, but he could receive income of $90,000 by working elsewhere. The firm earns revenues of $360,000 per year. What is the economic profit for the firm described above?
A. -$90,000. B. $0. C. $200,000. D. $90,000.