If the demand for table salt were perfectly inelastic at all prices, a decrease in supply would
A. increase the price and decrease the quantity demanded.
B. increase the price while not affecting the quantity demanded.
C. would reduce the quantity demanded to zero no matter what the initial price.
D. have no effect on either price or quantity demanded.
B. increase the price while not affecting the quantity demanded.
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Which of the following is an example of regulating quality standards?
a. Advertising bans. b. Blue laws. c. The minimum wage. d. Professional licensing requirements.
Which of the following is correct?
A. Public saving equals national saving plus private saving. B. National saving equals public saving minus private saving. C. National saving equals private saving plus public saving. D. Private saving equals national saving plus public saving.
The function of the financial statement, which colleges ask parents to fill out to make their children eligible for tuition scholarships, is to
A) determine cases of genuine need. B) maintain the college's eligibility for federal assistance. C) permit the college to confine its aid to students who can make most effective use of the aid. D) provide information about the demand curves of potential customers.
In the above figure, the deadweight loss due to the tax is
A) $1,000. B) $2,000. C) $4,000. D) $8,000.