Product differentiation allows a firm to charge a higher price because the residual demand curve facing the firm
A) is more elastic than the residual demand curve without product differentiation.
B) is less elastic than the residual demand curve without product differentiation.
C) is horizontal.
D) shifts to the left.
B
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Consider a market that is in equilibrium. If it experiences a decrease in demand, what will happen? The demand curve will shift to the:
A. left, and the equilibrium price and quantity will rise. B. left, and the equilibrium price will increase and the equilibrium quantity will decrease. C. left, and the equilibrium price and quantity will fall. D. right, and the equilibrium price and quantity will fall.
Indifference curves that are closest to the origin are preferable to ones that are farther from the origin
a. True b. False Indicate whether the statement is true or false
A decrease in the aggregate demand curve along the LRAS curve, all other things unchanged, will generate ______ in potential real GDP and _______ in the price level
a. an increase; no change b. a decrease; no change c. no change; an increase d. no change; a decrease
In 2018, why did the United States impose temporary safeguard tariffs beginning at 30 percent on imports of solar panels and up to 50 percent on imports of washing machines?
A. The United States wanted to ensure that it remained a net exporter of washing machines and solar panels. B. The U.S. International Trade Commission found that rising imports had harmed U.S. firms in these industries. C. The United States government imposed tariffs on washing machines and solar panels in retaliation for other countries' tariffs on U.S. exports of durable goods. D. Because of growing U.S. demand for washing machines and solar panels, the United States government saw the opportunity to increase government revenue and imposed tariffs on these products.