Consider the two graphs above. Suppose producers forecast a decrease in sales. This would ________ the desired level of inventories, as depicted in graph ________
A) increase; B
B) increase; A
C) decrease; B
D) decrease; A
D
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Economists estimated that the cross-price elasticity of demand for beer and wine is -0.83 and the income elasticity of wine is 5.03. This means that
A) beer and wine are substitutes and wine is a luxury good. B) beer and wine are substitutes and wine is an inferior good. C) beer and wine are complements and wine is a luxury good. D) beer and wine are complements and wine is an inferior good.
In Macroland, currency held by the public is 2,000 econs, bank reserves are 300 econs, and the required reserve/deposit ratio is 10 percent. If the Central Bank raises the required reserve/deposit ratio making the new desired ratio equal to 15 percent, then the money supply in Macroland will ________ to ________ econs, assuming that the public does not wish to change the amount of currency it holds.
A. increase; 4,000 B. decrease; 4,000 C. decrease; 5,000 D. increase; 5,000
What is one reason existing firms might lobby the government to increase regulation in their industry?
A) It increases entry and exit costs, thereby reducing producer surplus to existing firms. B) It increases entry and exit costs, thereby potentially increasing producer surplus to existing firms. C) It increases entry and exit costs, but has no impact on producer surplus. D) Firms cannot be trusted to treat their customers fairly and ethically.
The tablet-computer market is best characterized as a(n):
A. Pure competition B. Monopolistic competition C. Oligopoly D. Monopoly