The decrease in the price of a good would
A. cause a movement along the supply curve to a (higher price, higher quantity) point.
B. move its supply curve to the right.
C. move its supply curve to the left.
D. cause a movement along the supply curve to a (lower price, lower quantity) point.
Answer: D
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One difference between stocks and bonds is that
A) stocks do not involve a promise to repay a purchaser of the stock, while bonds represent a promise to repay the purchase price of the bond. B) stocks represent ownership in companies, while bonds represent ownership in banks. C) stocks are financial securities, while bonds are labor market securities. D) stocks are usually issued in electronic form, while bonds are usually issued in paper form.
To maximize welfare in a competitive market that has a negative externality in production, government should tax a pollution-generating good at a specific tax equal to the marginal cost of producing the good
Indicate whether the statement is true or false
What is perfect competition?
a. A situation in which each firm faces many competitors that sell identical products b. A situation in which a firm has a monopoly on a product c. A situation in which one firm has a distinct sales advantage over other competitors d. A situation in which each firm has a distinctly different version of the same product
When the price of coffee is $2.2 per cup, 11 million cups are demanded, and when the price of coffee goes up to $2.6 per cup, 10 billion cups are demanded. The coffee in this range has a(n)
A. elastic demand. B. unit elastic demand. C. perfectly elastic demand. D. inelastic demand.