The figure above shows the U.S. demand and U.S. supply curves for cherries. In the absence of international trade, cherry farmers would receive ________ per pound of cherries
A) $2.50 B) $1.50 C) $2.00 D) $1.00 E) $0.50
B
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Most people buy salt infrequently and in small quantities. Even a doubling of the price of salt is likely to result in a small decline in the quantity of salt demanded. Therefore
A) the price elasticity of demand for salt is greater than 1 (in absolute value). B) the demand for salt will be perfectly inelastic. C) salt is a normal good. D) the demand for salt is relatively inelastic.
Which of the following statements is (are) true concerning a pure competition situation?
a. Its demand curve is represented by a vertical line. b. Firms must sell at or below market price. c. Marginal revenue is equal to price. d. both b and c e. both a and b
When the Fed decreases the money supply, we expect
a. interest rates and stock prices to rise. b. interest rates and stock prices to fall. c. interest rates to rise and stock prices to fall. d. interest rates to fall and stock prices to rise.
Increasing cost industries are consistent with ________ in the long run.
A. the law of supply. B. the law of diminishing marginal product. C. the law of demand. D. None of these are correct.