Consumers value the product-specific services for a new smartphone at $25 and the marginal cost to the retailers for providing the product-specific services is $20. From the manufacturer's perspective, a resale price maintenance agreement ________ be successful as it will ________ the equilibrium quantity sold.
A) will; increase
B) will not; increase
C) will not; decrease
D) will; decrease
A) will; increase
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Answer the following statements true (T) or false (F)
1. Demand is a list of needs or wants, regardless of purchasing power. 2. There is a difference between demand and quantity demanded. 3. A typical demand schedule shows higher sales at lower prices. 4. The quantity of goods demanded is a function of price alone. 5. An increase in demand causes price to rise and quantity sold to fall.
Which of the following is an important assumption about the labor market that is shared by both the original Keynesian model and the Friedman "Fooling Model?"
A) The supply of labor depends on expected real wages. B) The demand for labor is a function of nominal wages. C) Workers can be "off" their labor supply function in the short-run equilibrium. D) Firms can be "off" their labor demand function in the short-run equilibrium.
The Board of Governors of the Federal Reserve consists of seven members, each of which are
A) appointed by the president of the United States. B) elected by the public every two years. C) presidents of one of the 12 regional Federal Reserve Banks. D) CEOs of commercial banks within each Federal Reserve district.
Explain how continuing technical progress may cause the price of scarce, exhaustible resources to fall over time
What will be an ideal response?