Suppose that milk producers expect that the price of milk is going to drop next week. This would cause
A) a decrease in the supply of milk today.
B) an increase in the supply of milk today.
C) an increase in the demand for milk today.
D) the selling price of milk to rise today.
B
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Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.35 per minute. If Always There Wireless charges the highest fixed fee that it can without losing the low-demand consumers, what is Always There Wireless's total profit?
A. $11,250 C. $11,050 D. $8,450
Since there are diminishing returns to the removal of further trade barriers, economists do not favor further negotiations
Indicate whether the statement is true or false
The expected utility theory
A) predicts all actions involving uncertainty. B) predicts no actions involving uncertainty. C) predicts some, but not all, actions involving uncertainty. D) predicts only one in three actions involving uncertainty.
In the Keynesian model, the real wage is mildly procyclical because
A. the supply of labor fluctuates with the business cycle. B. firms take advantage of recessions to pay slightly lower wages, since there's excess labor supply. C. demand for labor fluctuates with the demand for final goods. D. workers' effort may depend on the unemployment rate and the real wage.