Refer to the given data. If the economy was opened to free trade and the world price of $1 prevailed, the price and quantity sold of this product would be:
Answer the question on the basis of the following domestic supply and demand schedules for a product. Suppose that the world price of the product is $1.
A. $1 and 1 unit.
B. $1 and 16 units.
C. $3 and 7 units.
D. $2 and 11 units.
B. $1 and 16 units.
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The equilibrium level of regulation is _____
a. determined where marginal political gains to the special interests are equal to the marginal political costs of the foregone regulation b. determined where the marginal benefits from the regulation are equal to the marginal costs of the regulation c. determined where the marginal political benefits to the special interests are equal to zero d. determined where the marginal benefits from the regulation are equal to zero
If the price of a product is lowered from $300 to $270, and as a result the quantity demanded increases from 25 to 30 units, we know that in that range: a. demand has declined
b. demand is elastic. c. demand is unit elastic. d. demand is inelastic. e. demand is perfectly elastic.
Consider a consumer who purchases two goods, X and Y. If the price of good Y falls, then the substitution effect by itself will
a. cause the consumer to buy more of good Y and less of good X. b. cause the consumer to buy more of good X and less of good Y. c. not affect the amount of goods X and Y that the consumer buys. d. result in an upward-sloping demand for good Y because of the substitution effect.
One of the major advantages of the health savings account is that:
a. there is virtually no limit to how much money you can save each year. b. it provides individuals with more control over their own health care spending. c. it eliminates concern over high and rising premiums. d. there are few limitations on what the money can be used to purchase. e. it provides peace of mind so patients can be indifferent to the prices they pay.