A determinant of the price elasticity of supply is the extent to which
A) consumers like the quality of the good.
B) the demand for the good is relatively elastic.
C) the good has many consumer substitutes.
D) production of the good uses commonly available resources.
D
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In the Prisoners' Dilemma game,
a. the Nash equilibrium is the only outcome that is not Pareto optimal. b. neither player has a dominant strategy. c. the Stackelberg equilibrium will be Pareto optimal if the game is played sequentially. d. all possible outcomes are Nash equilibria.
If private giving to public goods involves externalities, what is a Pigouvian solution to the public goods problem?
What will be an ideal response?
The figure illustrates the market for bagels. Initially the market is in equilibrium, Then the number of bagels produced is cut from 20 to 10 an hour and the price rises to $2.00 per bagel. Consumer surplus decreases by ________
A) $5.00 an hour B) $2.50 an hour C) $7.50 an hour D) $0.50 a bagel
Although the pegged exchange rate between the yuan and the dollar has ________ the yuan, China had been reluctant to abandon the peg for fear that abandoning the peg would ________
A) overvalued; reduce exports B) undervalued; reduce imports C) overvalued; increase imports D) undervalued; reduce exports