Demand tends to be elastic at higher prices and inelastic at lower prices.
Answer the following statement true (T) or false (F)
True
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For a resource to be able to generate temporary competitive advantage over rivals, it must be
a. Valuable b. Rare c. Valuable and rare d. Not valuable but rare
If U.S. quotas on imported sugar were eliminated,
A. The world price of sugar would rise. B. The supply of sugar in the United States would shift to the right and sugar prices would fall. C. The demand for sugar in the United States would shift to the left and prices would fall. D. The supply of sugar in the United States would shift to the left and prices would rise.
A possible reason a nation might impose a protectionist policy such as a tariff is to:
A. increase the level of imports. B. protect an infant industry from foreign competitors. C. encourage specialization in the good in which the nation has a comparative advantage. D. slow domestic production.
Coal is used as a source of energy in many manufacturing processes. Assume a long strike by coal miners reduced the supply of coal and increased the price of coal. This would cause
A. the short-run aggregate supply curve to become flatter. B. the short-run aggregate supply curve to shift to the right. C. the short-run aggregate supply curve to shift to the left. D. the short-run aggregate supply curve to become nearly vertical at all levels of output.