Suppose a tax were imposed on motel rooms in the San Antonio area. If demand were slightly elastic and supply were very inelastic, the tax would be borne
A. entirely by motel owners.
B. mainly by motel owners.
C. mainly by motel renters.
D. entirely by motel renters.
B. mainly by motel owners.
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Which of the following would cause the price elasticity of demand for a variable input to be greater?
A) the smaller the price elasticity of demand for the final product B) the longer the time period being considered C) the smaller the proportion of total costs accounted for by the variable input D) The harder it is for a variable input to be substituted for by other inputs.
Assuming that Pepsi-Cola and Coca-Cola are substitutes, a rise in the price of Pepsi-Cola, other things being equal, results in a(n):
a. upward movement along the demand curve for Coca-Cola. b. downward movement along the demand curve for Coca-Cola. c. leftward shift in the demand curve for Coca-Cola. d. rightward shift in the demand curve for Coca-Cola.
Which of the following is NOT an example of a good with network economies?
A. Internet service B. A computer printer C. A cell phone D. Facebook
If the foreign exchange rate is 70 cents for one Swiss franc, then
A) a car that costs 40,000 francs will cost $7,143.00. B) a wine that costs 200 francs will cost $14.00. C) a clock that costs 500 francs will cost $350.00. D) a house that costs 100,000 francs will cost $700,000.00.