In a recent article, two economists estimated that the 37.5% increase in price that would result from a 75 cent tax increase on cigarettes would lead to a decrease in smoking among college students of 30%
What can you conclude about the demand for cigarettes among college students? A) It is price elastic.
B) It is price inelastic.
C) It is unit elastic.
D) It is perfectly inelastic.
B
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In the short run, an increase in real GDP will
a. increase unit costs and increase the price level b. increase unit costs and decrease the price level c. decrease unit costs and decrease the price level d. decrease unit costs and increase the price level e. have no effect on unit costs or the price level
An tax that is applied to imported products which are not produced domestically is a(n):
free trade policy tariff Import quota Nontariff barrier
If short-term and long-term interest rates are currently equal and the Fed contracts the money supply, the yield curve would be expected to:
A. become downward sloping. B. become vertical. C. be unaffected. D. become upward sloping.
Suppose Brad Pitt and Angelina Jolie wear matching platinum jewelry in their new movie. After the movie is released, suppose that consumers increase their demand for the jewelry and at the same time manufacturers increase the supply of the jewelry. As a result
A. the equilibrium quantity will decrease, and the equilibrium price will increase. B. the equilibrium quantity will increase, and there is an indeterminate change in the equilibrium price. C. the equilibrium quantity and price are both indeterminate. D. the equilibrium price and quantity will both decrease.