Suppose a decrease in the supply of bottled water results in a decrease in revenue. This indicates that
A) the supply of bottled water is elastic in the price range considered.
B) the supply of bottled water is inelastic in the price range considered.
C) the demand for bottled water is inelastic in the price range considered.
D) the demand for bottled water is elastic in the price range considered.
D
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Price cap regulation improves cost control incentives relative to rate-of-return regulation
Indicate whether the statement is true or false
An increase in the dollar price of the English pound will
A. increase the supply of dollars. B. decrease the supply of pounds. C. cause an increase in the pound price of the dollar. D. cause a decrease in the pound price of the dollar.
Recall the Application about the British experience with private water companies in the nineteenth century to answer the following question(s).Recall the Application. The British experience with water privatization showed that the distribution of water is:
A. a natural monopoly. B. best left as a deregulated market. C. best set up as a trust. D. a classic example of price fixing.
Which of the following is a financial intermediary?
A. the Internal Revenue Service B. the U.S. Department of the Treasury C. an insurance company D. a share of corporate stock