If sellers expect the price of a good to rise in the future, what are they likely to do?
(A) Put more goods on the market immediately.
(B) Store goods now to sell more in the future.
(C) Raise their prices now.
(D) Set prices according to the law of demand.
Ans: (B) Store goods now to sell more in the future.
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When the expected inflation rate equals the actual inflation rate, the real interest rate was accurately estimated.
Answer the following statement true (T) or false (F)
Jessica's marginal cost for producing a pitcher of lemonade is $0.25. Therefore, $0.25 is her:
A. reservation price. B. producers surplus. C. marginal revenue. D. equilibrium price.
Tax incidence does not depend on _____.
What will be an ideal response?
A farmer is deciding whether or not to add fertilizer to his or her crops. If the farmer adds 1 pound of fertilizer per acre, the value of the resulting crops rises from $80 to $100 per acre. According to marginal analysis, the farmer should add fertilizer if it costs less than:
A. $12.50 per pound. B. $20 per pound. C. $80 per pound. D. $100 per pound.