Refer to the above graph showing the market for a product. Which of the following could not explain the indicated increase in equilibrium price from P 1 to P 2?
An increase in consumer incomes
An increase in production costs
An increase in the price of a substitute product
A decrease in the price of a complementary product
An increase in production costs
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What must be the case if a perfectly competitive firm's economic loss is less by shutting down rather than by producing and selling some output?
What will be an ideal response?
Define price discrimination and explain why a monopolist would price discriminate?
What will be an ideal response?
What activity does the Fed undertake when it carries out open-market operations? a. It buys and sells the bonds, but not the notes, of leading U.S. corporations
b. It changes the legal reserve requirements for member banks. c. It changes the discount rate, which generally increases the amount of available credit. d. It provides funds so that healthy depository institutions can purchase weaker ones on the open market. e. It deals in the purchase and sale of U.S. government securities.
Indirect business taxes include all of the following EXCEPT
A. taxes on business equipment. B. sales taxes. C. taxes on corporate profits. D. taxes on business property.