The effect of an import quota is to
A. raise the price and reduce the quantity of imports.
B. raise the price and the quantity of imports.
C. lower the price and the quantity of imports.
D. raise the quantity and reduce the price of imports.
Answer: A
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Cary increases the price of her cakes from $8 to $10 per cake, but her cash receipts decrease by 2 percent. The price elasticity of demand (in the $8 to $10 range) is
a. elastic. b. inelastic. c. 0.02. d. 0.25.
The desire to redistribute income more fairly was one of the major motivations for ______.
a. the Russian Revolution b. the American Revolution c. World War I d. World War II
In order to continue earning an economic profit, individual farmers must
A. Charge higher prices than their competitors. B. Continue to improve their productivity. C. Expand their rate of output until marginal cost equals zero. D. Charge lower prices than their competitors.
Refer to Monopoly Problem. The equation for this monopolist’s marginal revenue is
Consider a monopoly with constant marginal costs of $20. Consumers in the market for this monopoly’s product have demand of Q = 100 - 2P. a. MR = 100 - 2P b. MR = 100 - 4P c. MR = 50 - 0.5Q d. MR = 50 - Q