The price of a new textbook increased by 35 percent and the price of a used textbook increased by 30 percent. What happened to the relative price of the new textbook?
A. It decreased by 5 percent.
B. It increased by 5 percent.
C. It increased, but we can't tell by how much without more information.
D. It decreased, but we can't tell by how much without more information.
Answer: C
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Show that for a monopolist with a constant marginal cost and facing a linear demand curve, if a specific tax is imposed on the monopolist, the tax burden is shared equally between the monopolist and the consumers
What will be an ideal response?
People might withdraw money from interest-bearing accounts,
a. making the interest rate fall, if there is a surplus in the money market. b. making the interest rate rise, if there is a surplus in the money market. c. making the interest rate fall, if there is a shortage in the money market. d. making the interest rate rise, if there is a shortage in the money market.
Economists assume people behave
A) instinctively.
B) rationally.
C) irrationally.
D) greedily.
One reason for increasing costs industries is that as an industry grows, it drives up the prices of inputs.
Answer the following statement true (T) or false (F)