The price paid by buyers in a market will increase if the government (i) increases a binding price floor in that market. (ii) increases a binding price ceiling in that market. (iii) decreases a tax on the good sold in that market
a. (ii) only
b. (iii) only
c. (i) and (ii) only
d. (i), (ii), and (iii)
c
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Suppose the price of burgers increases from $2 to $3 each. The degree to which quantity demanded responds to this price increase depends on the
A) price elasticity of demand. B) the price elasticity of supply. C) income elasticity of demand. D) cross elasticity of demand.
Sam spends all of his income on textbooks and hot dogs. The price of a textbook is $40 and the price of a hot dog is $0.50
If Sam is maximizing his utility and the marginal utility he derives from the last textbook he purchases is 400, then the marginal utility he derives from his last hot dog purchased must be A) 400. B) 10. C) 5. D) 20.
The market structure that is most different from the model of perfect competition is:
A) monopolistic competition. B) monopsony C) oligopoly. D) monopoly.
If your supplier becomes more profitable
a. you become more profitable by acquiring it b. you become less profitable by acquiring it c. acquiring it will make you more profitable if there are no synergies to exploit d. unless there are no synergies to exploit through acquisition, acquiring it will not make you more profitable