If demand for drugs is inelastic, then changes in the supply curve through interdiction efforts will dramatically
A. raise equilibrium quantity.
B. lower equilibrium quantity.
C. lower equilibrium price.
D. raise equilibrium price.
Answer: D
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America’s antitrust laws are used to protect competition against possible encroachment by monopoly. This is an example of government as
A. regulator of businesses. B. buyer of goods and services. C. tax collector. D. redistributor.
The market clearing price of a good is
A) the price at which there is at least some of the good available for everyone. B) the price at which there is no surplus and no shortage. C) the price that consumers prefer. D) the price that producers prefer.
Purchases of foreign assets by U.S. residents are tabulated in the U.S. balance of payments as a:
a. capital inflow. b. capital outflow. c. current account outflow. d. unilateral transfer.
Economists use models in order to
a. experiment with alternative circumstances. b. make educated guesses about real life events. c. predict outcomes under various hypothetical conditions. d. increase understanding of how a relationship actually works. e. All of the above are correct.