Refer to the above table for smartphones. Suppose the demand for smartphones rises because there are more Wifi hot spots. The new equilibrium price will be
A. $275.
B. more than $275.
C. $200.
D. impossible to be determined given the information.
Answer: B
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In 1963, government economists assumed that the MPC for the United States was approximately 0.90 . If taxes were cut by $9 billion, then consumer expenditures would initially be expected to
a. decrease by $9.0 billion. b. increase by $9.0 billion. c. decrease by $8.1 billion. d. increase by $8.1 billion.
How would we expect the economic growth rates in future years of country A and country B to compare?
A. Country A will have a higher growth rate.
B. Country B will have a higher growth rate.
C. Both countries will grow at about the same rate.
D. There is not enough information to determine the relative growth rates of countries A and B.
Relative to a monopoly charging a single price to all consumers, perfect price discrimination ________ producer surplus and ________ consumer surplus.
A. decreases; decreases B. decreases; increases. C. increases; decreases D. increases; increases
All of the following are true about a monopolist EXCEPT
A) the demand curve for its product is perfectly elastic. B) it produces a product with no close substitutes. C) its demand curve is the same as the market demand for the industry. D) it is a single seller of a good or service.