For a cartel to work, demand for the cartel's product must be
A. inelastic.
B. perfectly elastic.
C. elastic.
D. unit elastic.
Answer: A
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Refer to Figure 3-2. A decrease in the price of substitutes in production would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
_____ gains when the U.S. dollar appreciates
a. A U.S. exporting firm b. A foreign tourist in the United States c. A U.S. investor investing abroad d. A foreign investor in the United States
Political parties
A. have a large influence on setting the political agenda of candidates. B. are only concerned with market efficiency. C. have primaries that influence the party platform. D. have a large influence on setting the political agenda of candidates and are only concerned with market efficiency. E. have a large influence on setting the political agenda of candidates and have primaries that influence the party platform.
Special interest groups are very unlikely to push for policies that increase the size of their slice of the economic pie if it means that the overall size of the economic pie will shrink
Indicate whether the statement is true or false