Holding all other factors constant and using the midpoint method, if a candy manufacturer increases production by 20 percent when the market price of candy increases from $0.50 to $0.60, then supply is
a. inelastic, since the price elasticity of supply is equal to .91.
b. inelastic, since the price elasticity of supply is equal to 1.1.
c. elastic, since the price elasticity of supply is equal to 0.91.
d. elastic, since the price elasticity of supply is equal to 1.1.
d
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The Celler-Kefauver Act of 1950 amended the:
a. Sherman Antitrust Act. b. Clayton Act. c. Federal Trade Commission Act. d. Robinson-Patman Act.
Society can produce at a point outside the production possibilities frontier, but only if it is using all of its resources efficiently
a. True b. False Indicate whether the statement is true or false
The idea of horizontal equity in taxation implies that
a. equally situated individuals should be taxed equally. b. unequally situated individuals should be taxed unequally. c. benefits should be given first to those individuals who need them most. d. the greatest tax burden should be borne by the wealthiest individuals.
Monopoly Industry is one where
a) There is only one producer. b) There are several producers. c) There are significant barriers to the entry of new firms. d) There is one producer and there are barriers to the entry of new firms.