Refer to the diagram, which shows demand and supply conditions in the competitive market for product X. Other things equal, a shift of the supply curve from S 0 to S 1 might be caused by a(n):
A. increase in the wage rates paid to laborers employed in the production of X.
B. government subsidy per unit of output paid to firms producing X.
C. decline in the price of the basic raw material used in producing X.
D. increase in the number of firms producing X.
A. increase in the wage rates paid to laborers employed in the production of X.
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If the price elasticity of demand was 4.0 (in absolute terms), a 10% off sale would lead to:
a. a 40% increase in purchases by customers. b. a 40% decrease in purchases by customers. c. a 2.5% increase in purchases by customers. d. a 2.5% decrease in purchases by customers.
Which of the following would be a concern of normative economics?
a. measuring the actual distribution of income in the economy b. recommending a change in government policy to make the distribution of income more equitable c. determining the impact of higher income taxes on the distribution of income d. determining the impact of a lower federal budget deficit on the distribution of income e. measuring the change in the nation's income distribution since 1960
Consider a firm that uses only one fixed input and one variable input. a . Explain how this firm's ATC, AVC, and AFC curves will be affected by a government tax on the fixed input. b. Explain how this firm's ATC, AVC, and AFC curves will be affected by a government tax on the variable input. c. When would a tax on an input cause the MC curve to change?
In order for a barter transaction to be successful, there must be a
A. federal tax law in effect. B. market for the goods. C. double coincidence of wants. D. high demand for a certain item.