For which of the following is demand most likely to be perfectly inelastic?
a. BMW automobiles
b. Pepsi Cola
c. hot dogs
d. insulin
e. Tylenol
D
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Describe the facts found in the bond market about the relationship between interest rates on bonds of different maturities
What will be an ideal response?
The Solo Coal Mine is the only employer in the small town of Way out there. The market supply of coal miners is Qs = 0.02W - 200 and Qd = 500 - 0.02W, where W is the annual wage of a coal miner and Q is the number of coal miners. What is the wage required to hire the profit maximizing number of workers?
A. $25,000 B. $50,000 C. $20,000 D. $15,000
All of the following are true regarding the relationship between price elasticity of demand and total revenues EXCEPT
A) when market demand is elastic, if the market price declines, then total revenues will rise. B) when market demand is unit elastic, if the market price rises, then total revenues will not change. C) when market demand is inelastic, if the market price falls, then total revenues will decrease. D) when market demand is inelastic, if the market price rises, then total revenues will decrease.
U.S. drug laws prohibiting re-importation of prescription drugs prevent
A. American pharmaceutical distributors from re-selling to Canadian citizens at higher prices. B. Canadian pharmaceutical distributors from re-selling to American citizens at higher prices. C. the U.S. government from dictating the drug prices to be paid by Canadian citizens. D. U.S. pharmaceutical companies from earning monopoly profits.