Refer to the accompanying figures. If Mallory and Rick are the only two consumers in this market and the price of soda is $0.75 per can, then what will be the market demand for soda each month?
A. 70
B. 50
C. 20
D. 30
Answer: B
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Which of the following describes the behavior of M1 in recent decades?
A) it soared during the recessions of 1990-91, 2001, and 2007-2009 B) it tended to grow more rapidly than M2 C) it was more stable than M2 D) it has not declined since the 1970s
Which of the following measures are government regulations to increase competition?
A) Government ends the ban on steel imports. B) Government shortens the term of the patent for a drug. C) Government subsidizes firms to enter energy market. D) All of above.
Demand for science fiction novels is elastic and supply of science fiction novels is inelastic. When the government puts a $2.00 tax on science fiction novels,
a. buyers will pay most of the tax. b. sellers will pay most of the tax. c. buyers and sellers will split the tax evenly. d. elasticity has nothing to do with who pays the tax.
According to new classical theory, if the public correctly anticipates a government policy to increase aggregate demand, then the
A) short-run Phillips curve will be upward sloping, but the long-run Phillips curve will be downward-sloping. B) long-run Phillips curve will be upward sloping, but the short-run Phillips curve will be downward-sloping. C) short-run Phillips curve will be upward sloping, but the long-run Phillips curve will be vertical. D) long run Phillips curve will be upward sloping, but the short-run Phillips curve will be vertical. E) short- and long-run Phillips curves will be vertical.