For many products, such as fast foods, a variety of prices can be found, but sellers with higher prices can expect to sell their products because
A) arbitrage will quickly eliminate price differences.
B) their demand is perfectly inelastic.
C) firms differentiate products in many ways, for example, higher-priced fast food restaurants may offer better service.
D) consumers are not sensitive to prices.
C
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In a deposit-refund system,
a. the refund component rewards potential polluters for proper disposal or recycling activity b. the deposit should be set equal to the MSC of illegal waste disposal to achieve efficiency c. monitoring and enforcement costs are higher than if a pollution charge were used d. actual polluters are not penalized for actions that harm the environment
The law of supply implies that
A. Supply curves are flat. B. A change in a determinant of demand shifts the supply curve. C. Supply curves are downward-sloping to the right. D. Supply curves are upward-sloping to the right.
When increases in the supply of an agricultural product are much greater than the increases in demand for it over time, then the price:
A. And quantity of agricultural products will increase B. And quantity of agricultural products will decrease C. Of agricultural products will increase, but the quantity will decrease D. Of agricultural products will decrease, but the quantity will increase
Assume the market in the graph shown with demand D and supply S1 is in equilibrium at a quantity of 5 units. Producer surplus is:
A. $15. B. $10. C. $5. D. $7.50.