Despite the fact that the Quick-Buzz Coffee Company provides a coupon in the local newspaper that can be redeemed for $1 off the price of its best-selling coffee beans, not all buyers actually use the coupon. Assuming everyone has a subscription to the newspaper, from this we know that:
A. the coffee drinkers who use the coupons have more elastic demand than the coffee drinkers who pay full price.
B. the coffee drinkers who use the coupons have less elastic demand than the coffee drinkers who pay full price.
C. all coffee drinkers have a highly inelastic demand.
D. all coffee drinkers have a highly elastic demand.
Answer: A
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Which of the following is likely to cause a right shift in the supply curve for labor?
A) An increase in the population B) A decrease in the population C) An increase in the price of the final good that the workers produce D) A decrease in the price of the final good that the labor is used to produce
Contractionary monetary policy increases the federal funds rate
Indicate whether the statement is true or false
To be able to engage in profit-maximizing price searching, a monopoly firm must be able to
A) prevent the entry of other firms into the market for its product. B) induce the entry of other firms into the market for its product. C) avoid earning negative economic profits in the short run. D) always earn zero economic profits.
Consumers are willing to purchase a product up to the point where
A) the marginal benefit of consuming the product is equal to the marginal cost of consuming it. B) the consumer surplus is equal to the producer surplus. C) the marginal benefit of consuming the product equals the area below the supply curve and above the market price. D) the marginal benefit of consuming a product is equal to its price.