Esther owns a small organic farm. Her boyfriend, Lou, is an expert on fruit and vegetable prices. When Esther consults him about raising her prices, he assures her that if she does, her total revenue would increase. That's because within the price range she's considering,
a. there would be no change in quantity demanded
b. there would be a substantial change in quantity demanded
c. the price elasticity of demand is greater than one
d. the price elasticity of demand is equal to one
e. the price elasticity of demand is less than one
E
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A modified version of utilitarianism proposed by John Rawls states that
A) the distribution of the economic pie is fair if the rules are fair. B) the distribution of the economic pie is fair if it achieves the greatest happiness for the greatest number of people. C) the fair distribution of the economic pie is the one that makes the poorest person as well off as possible. D) goods may be transferred from one person to another only by voluntary exchange.
If Mario's Pizza, a large frozen pizza distributor, builds a tomato sauce plant near Red Tomatoes, a large tomato farm, to reduce the costs of transporting fresh tomatoes, ________ potentially faces a hold-up problem as the firm invested in a ________.
A) Mario's Pizza; transaction-specific asset B) Red Tomatoes; negotiation asset C) Red Tomatoes; transaction-specific asset D) Mario's Pizza; negotiation asset
If workers in the auto industry were organized separately into an electrical workers' union, a machinists' union, and a painters' union, these unions would be called
a. agency unions b. industrial unions c. skilled unions d. craft unions e. federated unions
Which of the following examples would lead to a higher equilibrium price?
a. a report showing the health risks of consuming sugary drinks b. a publicized defect of an HDTV c. a widespread fire destroying timber d. favorable weather causing a bumper orange crop