A tax on the buyers of personal computer external hard drives encourages
a. sellers to supply a smaller quantity at every price.
b. buyers to demand a smaller quantity at every price.
c. buyers to demand a larger quantity at every price.
d. Both a) and b) are correct.
b
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In order to draw an individual's budget line, we must know
A) prices and preferences. B) prices and income. C) income and preferences. D) prices, income, and preferences.
Develop a simple model of inflation by identifying at least two exogenous variables and describing, briefly, how the value of these exogenous variables will impact the rate of increase in the overall level of prices in the economy
What will be an ideal response?
The difference between revenue and cost during a single year of a project's life is called the:
A. interest rate. B. net present value. C. net cash flow. D. profit.
The profit maximizing markup (over MC) is given by
A. elasticity + 1. B. elasticity2. C. elasticity. D. 1/elasticity.