Matthew bakes apple pies that he sells at the local farmer's market. If the price of apples increases, the
a. supply curve for Matthew's pies will increase.
b. supply curve for Matthew's pies will decrease.
c. demand curve for Matthew's pies will increase.
d. demand curve for Matthew's pies will decrease.
b
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Refer to Table 20.1. George is a single taxpayer with an income of $65,000. If George had received a raise of $3,500 at the beginning of the year, his marginal tax rate would be
A) 22.99%. B) 23.75%. C) 38%. D) 95%.
Assume the United States has an absolute advantage in the production of everything compared to the African nation of Berundi. Can you think of any reason why both nations would still find it to their mutual advantage to trade with each other?
What will be an ideal response?
In the case of a specific tax the resulting price received by producers depends on
A) who pays the tax. B) the price elasticity of supply. C) the price elasticity of demand. D) All of the above.
If a firm in a monopolistically competitive market has a demand curve shifting to the right, it is likely that:
A. positive economic profits are being earned. B. firms are entering the market. C. the selling price is less than the average total cost of the firm. D. All of these statements are true.