Suppose Clem's Chemical Company wants to increase its total revenue. If there are few substitutes for Clem's Chemicals
A) Clem should increase the price of his chemicals.
B) Clem should decrease the price of his chemicals.
C) the demand for chemicals is elastic.
D) Clem will not be able to change the price of his chemicals.
A
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Assuming all else equal, if a household is pessimistic about future income, it is likely to cause a(n):
A) shift in the current credit supply curve of the household to the right. B) downward movement along the current credit supply curve of the household. C) upward movement along the current credit supply curve of the household. D) shift in the current credit supply curve of the household to the left.
If black markets help people meet their needs, they will tend to ________ created by the restrictive government policies
A) increase the absolute advantage B) reduce the deadweight losses C) reduce the cooperative surpluses D) increase the tax revenues
A major difference between a tariff and a quota is that a tariff
a. will reduce imports, but a quota generally will not. b. can easily be rescinded, but a quota cannot. c. will reduce the ability of foreigners to obtain the purchasing power to buy a nation's export goods, but a quota will not affect the foreign demand for the nation's exports. d. typically generates tax revenue, while a quota does not.
Suppose you observe that minor changes in supply seem to cause dramatic changes in price with only slight changes in the amount sold, you would conclude that
A. demand is inelastic. B. demand is elastic. C. demand is perfectly inelastic. D. demand is unit elastic.