If suppliers have rational expectations, what will be their expected price of grapes?
The following tables show the demand and supply for grapes. Demand is uncertain, with D1 and D2 each occurring 50% of the time. Suppliers must base their decisions on the expected price and must sell all grapes they bring to the market at the going market price.
a. $2.00 per pound.
b. $2.50 per pound.
c. $3.00 per pound.
d. $3.50 per pound.
b. $2.50 per pound.
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Suppose Sam's Shoe Co. makes only one kind of shoe, which sells for $50 a pair. If they sold 500,000 pairs of shoes, then their total revenue would be:
A. $25,000,000. B. $10,000. C. $2,500,000. D. Cannot answer this question without knowing the cost per pair.
Suppose that in the economy of Idaho, Amy earns an income of $50,000 a year and pays $10,000 in income taxes; Bailey earns an income of $25,000 a year and pays $8,000 in income taxes. Based on this information, we could say that Idaho's tax system is
A. progressive. B. regressive. C. flat. D. proportional.
A decrease in confidence will cause
A. AS to decrease (move up and to the left). B. AD to decrease (move to the left). C. AS to increase (move down and to the right). D. AD to increase (move to the right).