Who has a higher bargaining power if the demand for the good being transacted is price-elastic?
What will be an ideal response?
The buyer of the good has a higher bargaining power if his demand for the good is price- elastic. This is because the seller knows that if he charges a higher price for the good, the buyer will not purchase the good.
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The legal system provided by the government is necessary for the smooth working of markets because
A) it keeps criminals off of the streets. B) it defines and protects property rights. C) it is set up in the U.S. constitution. D) it ensures that producers maximize their profits.
When individuals are debating whether to supply labor, they think about all of the following except:
A. the cost in terms of forgone leisure. B. the benefit of more income for each hour worked. C. whether the benefits outweigh the costs. D. the level of profits they bring to the firm.
Leaders that give the group total freedom
a. autocratic b. laissez-faire c. democratic d. trait
A country runs a deficit in its current account if:?
What will be an ideal response?