If product price increases, then:
A. MP will increase.
B. MFC will increase.
C. MRP will increase.
D. MP will decrease.
Answer: C
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Explain the effect of a usury law.
What will be an ideal response?
Suppose the governor of California has proposed increasing toll rates on California's toll roads, and has presented two possible scenarios to implement these increases
Following are projected data for the two scenarios for the California toll roads: Scenario 1: Toll rate in 2015: $10.00. Toll rate in 2019: $22.50 For every 100 cars using the toll roads in 2015, only 81.6 cars will use the toll roads in 2019. Scenario 2: Toll rate in 2015: $10.00. Toll rate in 2019: $17.50 For every 100 cars using the toll roads in 2015, only 96.2 cars will use the toll roads in 2019. a. Using the midpoint formula, calculate the price elasticity of demand for Scenario 1 and Scenario 2. b. Assume 10,000 cars use California toll roads every day in 2015. What would be the daily total revenue received for each scenario in 2015 and in 2019? c. Is demand under Scenario 1 and under Scenario 2 price elastic, inelastic, or unit elastic. Briefly explain. (For above questions, assume that nothing other than the toll change occurs during the time frame listed that would affect consumer demand.)
According to public choice theory, tariffs, quotas, and other trade restrictions are primarily the result of the
a. political clout of foreigners. b. political clout of domestic consumers. c. political power of special interest groups. d. political desire for economic efficiency.
A tax on a good causes the size of the market to increase
a. True b. False Indicate whether the statement is true or false