Suppose Carol's Candid Cameras wants to increase its total revenue. If the firm lowers the price of cameras by 2 percent, Carol must be predicting that the quantity
A) supplied will increase by more than 2 percent.
B) demanded will increase by more than 2 percent.
C) demanded will decrease by less than 2 percent.
D) supply will decrease by less than 2 percent.
B
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A time-series graph
A) shows how a variable changes over time. B) uses bars rather than lines. C) shows points in a scatter diagram. D) is similar to a cross-section graph because both can show trends over time. E) is in the shape of a pie.
Consider a situation in which the government has limited information about costs and benefits of pollution abatement associated with a given industry
However, it is known that the marginal social cost curve for emissions is much steeper than the marginal cost of abatement curve (in absolute terms). In this situation, which method of emissions control is preferable when the greatest concern is with accuracy of control rather than the cost of control? That is, should a fee be used or should a standard be used? Explain.
An import quota will ordinarily raise the price of the good in the importing country
a. True b. False Indicate whether the statement is true or false
In equilibrium, if both uncovered and covered interest parity hold, what condition should exist?
a. World interest rates will be equal. b. Rates of inflation will equalize. c. The forward rate will equal the expected future spot rate. d. The forward rate will decrease as the spot rate rises.