If a tax of $1 a can is imposed on the buyers of sugary drinks, the demand for sugary drinks ______ and the price that buyers pay ______
A. doesn't change; doesn't change
B. doesn't change; rises by $1 a can
C. decreases; rises by more than $1 a can
D. decreases; rises by less than $1 a can
D Figure 7.1(a) illustrates this result.
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In the above figure of a monopolistically competitive firm, the marginal cost of the last unit produced is equal to ________ and is ________ marginal revenue
A) P2; greater than B) P3; greater than C) P1; greater than D) P1; equal to
Suppose the real GDP in an economy in the year 1999 was $2,000 and the total population was 500 . The economy experienced a 5% growth in real GDP and a 2% growth in its population in 2000 . Calculate the change in per capita income of the economy during this period
a. +1% b. +2.5% c. -3% d. +3% e. -4%
What is the unbalanced development strategy and how does this strategy create forward and backward linkages into the economy?
One company has 90% of the market for cola soft drinks. An antitrust action against this company is likely to be defended (by the company) by the argument that
A. there is no substitute for cola soft drinks. B. the market share is not important. C. the relevant market is for cola soft drinks. D. the relevant market is not that for cola soft drinks but for all soft drinks.