In the consumption function C = a + c(Y - T), the "marginal propensity to consume" appears as
A) a.
B) c.
C) cY.
D) -cT.
E) c(Y - T).
B
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A new cure for Toenail fungus is discovered for individuals resistant to the original treatment. At this point the firm producing this drug
a. Could be considered a monopoly b. Would be protected from entry by patents c. Would be facing many new entries in the market d. Only A&B
Acquiring a firm that sells a substitute good will
a. Make the demand curve more inelastic b. Make the demand curve more elastic c. Make MR>MC d. Will have no effect on the demand curve
By selling hardcover books to die-hard fans and paperback books to less enthusiastic readers, the publisher is able to price discriminate and raise its profits
a. True b. False Indicate whether the statement is true or false
When comparing the slopes of the aggregate-demand and aggregate-supply curves to the slopes of demand and supply curves for specific goods and services, the explanations are
a) the same for all the curves. b) quite different for the aggregate curves from the specific market curves. c) the same for the demand curves but not the supply curves. d) the same for the supply curves but not the demand curves.