Price makers always have to deal with ______.
a. a segmented demand curve
b. a horizontal demand curve
c. an upward sloping demand curve
d. a downward sloping demand curve
d. a downward sloping demand curve
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What is the main difference between an instrument rule and a targeting rule? Be sure to define each
What will be an ideal response?
Refer to Figure 7-1. The market equilibrium price is
A) $30. B) $25. C) $20. D) <$20.
Cost-benefit analysis of international trade
A) is basically useless. B) is empirically intractable. C) focuses attention primarily on conflicts of interest within countries. D) focuses attention on conflicts of interest between countries. E) never leads to government intervention in international trade.
On September 3, 2003, Universal Music Group announced plans to reduce the wholesale price of music CDs it distributes by an average of 25-30 percent. All else constant (i.e
, ignoring the effects of file-sharing programs), how would this change affect the retail market for new music CDs? A) Demand for CDs would increase, causing equilibrium price and quantity to increase. B) The supply of CDs would increase, causing equilibrium price to decrease and equilibrium quantity to increase. C) Demand for CDs would decrease, causing equilibrium price and quantity to decrease. D) The supply of CDs would decrease, causing equilibrium price to increase and equilibrium quantity to decrease.