Which of the following will not cause a change in the demand for product A?
A. A change in the number of buyers
B. A change in the price of A
C. A decline in consumer incomes
D. A decrease in the price of close-substitute product B
Answer: B
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As a result of a per-unit tax on output in a market: a. the quantity traded increases
b. the quantity traded does not change. c. the quantity traded decreases. d. a surplus is created at the new equilibrium price.
The cross-price elasticity of garlic salt and onion salt is -2, which indicates that garlic salt and onion salt are substitutes
a. True b. False Indicate whether the statement is true or false
Identify the correct statement.
A. The overall effects of the Uruguay Round on global pollution are actually small. B. The actual effects of the Uruguay Round on pollution levels are uniform across all countries. C. The composition effect of the Uruguay Round tends to increase production of environment-friendly products in the United States. D. Evidence shows that free trade is inherently anti-environment.
If there are external costs of production and perfectly competitive firms do not account for these costs, at the equilibrium level of output
A. P > MC and P = MSC. B. P = MC and P < MSC. C. P = MC = MSC. D. P = MC and P > MSC.