The above figure shows the U.S. market for replacement cell phone batteries. Suppose the U.S. government imposes the tariff illustrated in the figure. The tariff is equal to ________ and the price U.S
consumers pay ________ compared to the price paid when there was free trade. A) $2; decreases
B) $14; decreases
C) $2; increases
D) $12; increases
E) $14; increases
C
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If the price elasticity of demand for a good is greater than one in absolute value, economists characterize that demand is
A) elastic. B) inelastic. C) perfect. D) vertical.
The Monetarists advocate the monetary rule in order to stabilize the business cycle which states that the money supply should be increased by a constant rate year after year
a. True b. False Indicate whether the statement is true or false
Suppose that the current exchange rate between the dollar and peso is $1 equals 10 pesos. If a firm in Mexico wanted to purchase $100,000 worth of U.S. televisions, how many pesos must they exchange?
A. 100,000 pesos B. 1,000,000 pesos C. 10,000 pesos D. 11,000,000 pesos
Dumping refers to a country selling its exports at a price lower than its selling price at home.
Answer the following statement true (T) or false (F)