Which of the following is likely to have the most price elastic demand?
a. scissors
b. fruit
c. music downloads
d. toothpaste
c
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In order to have an impact, a ________ must be set below the equilibrium price, and when this occurs, ________
A) price ceiling; consumer surplus increases B) price floor; consumer surplus decreases C) price ceiling; producer surplus decreases D) price support; total revenue increases E) price support; consumer surplus increases
What is the Coase Theorem? What are transaction costs?
Which of the following statements is false?
A) A theory should be judged based upon whether or not it tells us the things we want to hear. B) Scientists are interested in finding out when their theories are wrong or right. C) Scientists are interested in building theories that can be refuted. D) If evidence is consistent with a theory's predictions, we state that the evidence fails to reject the theory.
Figure 3.6 illustrates a set of supply and demand curves for hamburgers. An increase in demand and an increase in quantity supplied are represented by a movement from:
A. point b to point a. B. point c to point d. C. point d to point a. D. point b to point d.