When a good is illegal, the supply curve is likely to be inelastic because
A. the difficulty of expanding operations as price rises because of the increased likelihood of capture.
B. extra costs associated with avoiding capture.
C. the ease of finding new buyers without getting caught.
D. the ease with which sellers can expand operations into new territory when price rises.
Answer: A
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A) raises; increases B) raises; decreases C) lowers; increases D) lowers; decreases
What is the source of the U.S. fiscal imbalance and what are the painful choices that we face?
What will be an ideal response?
Accountants use only ________ costs in their computations of short-run total cost.
a. opportunity b. implicit c. explicit d. variable
When the value of money falls as a result of a rapid increase in its supply, ________ occurs.
A. negative exchange B. currency debasement C. deflation D. all of the above