Holding all else constant, higher prices will:
A. decrease the Lerner index.
B. increase or decrease the Lerner index depending on the relative magnitude of the price increase.
C. increase the Lerner index.
D. have no impact on the Lerner index.
Answer: C
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It is likely that ______________ has an income elasticity less than 1, and _____________ have an income elasticity more than 1.
A. coffee; sailboats B. sailboats; cars C. vacations; cell phones D. filet mignon; chicken
In an oligopoly, when the quantity effect outweighs the price effect:
A. an increase in output may increase the firm's profits. B. a decrease in output may increase the firm's profits. C. keeping output constant and raising price will increase the firm's profits. D. keeping output constant and lowering price will increase the firm's profits.
It is possible to compare utility levels across consumers by attaching a numerical measure to utility
Indicate whether the statement is true or false
In general, countries with well-defined property rights, less government regulation, and lower taxes have
A. More corruption and crime. B. Higher rates of economic growth for the entire population. C. Higher per capita incomes. D. Higher rates of investment.