More cattle are found to have mad cow disease. As a result, consumer confidence in the safety of beef is shaken. What would an economist predict will happen in the beef market?
A) As consumer preferences move away from beef, there is an upward movement along the beef demand curve.
B) The demand curve will shift to the left.
C) The demand curve does not shift but consumers move to a point lower down the curve.
D) absolutely no change in either the quantity demand or the demand for beef
Answer: B
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The table above gives the demand schedule for lattes at the Bottomless Cu
A) 90 B) 30 C) 80 D) 60 E) 230
Which of the following would be consistent with the notion of a competitive market process, but would be inconsistent with the notion of perfect competition?
A) Cost-plus-markup pricing B) Freedom of entry C) Price taking behavior D) Large numbers of buyers and sellers E) All of the above.
If the government makes a good illegal and then imposes stiffer penalties on illegal drug buyers than on sellers, the price of the good ________ and the quantity ________
A) falls; increases B) rises; decreases C) falls; decreases D) does not change; decreases
How might inflation, even if fully anticipated, prevent the classical dichotomy from holding, even in the long run?
What will be an ideal response?