The government decided to reduce taxes on fast-food to increase revenue. The government assumes that fast-food products have
a. An inelastic demand
b. An elastic demand
c. A demand curve that is upward sloping
d. Unitary elastic demand curve
b
You might also like to view...
Positive externalities are created when
A) other consumers reduce their demand for coffee and price thereby declines. B) farmers spray pesticide in their fields and it washes into the local river after the first rainstorm. C) your neighbor plants beautiful trees and flowers in her yard. D) you purchase the "Mona Lisa" and lock it in a vault.
Refer to the graph below representing the market demand curve for a monopolist’s output. Which of the following quantities shown on the graph should the monopolist produce if it wishes to maximize its total revenue?
a. 900
b. 1,000
c. 1,100
d. Any of the above because total revenue does not change with a change in production.
Which of the following is the most likely explanation for the imposition of a price ceiling on the market for milk?
a. Policymakers have studied the effects of the price ceiling carefully, and they recognize that the price ceiling is advantageous for society as a whole. b. Buyers of milk, recognizing that the price ceiling is good for them, have pressured policymakers into imposing the price ceiling. c. Sellers of milk, recognizing that the price ceiling is good for them, have pressured policymakers into imposing the price ceiling. d. Buyers and sellers of milk have agreed that the price ceiling is good for both of them and have therefore pressured policymakers into imposing the price ceiling.
If a country engages in trade with other countries, it is known as
A. A closed economy. B. A democracy. C. A market economy. D. An open economy.