Suppose that in October the price of a cup of cafe latte was $2.50 and 400 lattes were consumed. In November the price of a latte was $2.00 and 600 lattes were consumed. What might have caused this change?
A) The price of coffee beans (an input of production of cafe lattes) fell.
B) The price of coffee beans (an input of production of cafe lattes) rose.
C) The price of tea (a substitute for cafe lattes) rose.
D) The price of tea (a substitute for cafe lattes) fell.
A
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a. The unemployment rate b. Personal income c. Industrial production d. Total employment e. Fluctuations in stock prices
If the primary goal in implementing a tax is to maximize efficiency and minimize deadweight loss, the government should impose a(n):
A. income tax. B. lump sum tax. C. sin tax. D. proportional tax.
Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium
a. True b. False Indicate whether the statement is true or false
It is easier for firms to form and maintain a cartel when:
a. there are cost differences among the industry's firms. b. there are more number of firms in the industry. c. there are greater barriers to entry. d. the goods supplied are varied.