Suppose that the demand for apples in Washington is elastic and the supply is inelastic. If the government of Washington passes a law prohibiting the use of synthetic pesticides that increases the marginal and average costs of producing apples, then:
a. the price of Washington State apples will decline.
b. Washington will stop producing apples, and New York apple growers will benefit.
c. apple growers will pass most of the increased costs on to consumers in the form of higher apple prices.
d. apple growers will keep prices constant but reduce costs by advertising less.
e. apple growers will bear most of the increased costs of regulation, and prices will increase only slightly.
e
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Consider the following:
(i) Silver is more abundant and easier to extract from some mines than from others. Is silver mining more likely to be a constant-cost or an increasing-cost industry? Justify your choice. (ii) Production of flags requires nylon, sewing machines, and unskilled labor. Is flag production more likely to be a constant-cost or an increasing-cost industry? Justify your choice. (iii) Farmers make up a significant proportion of the demand for arable land. Is farming more likely to be a constant-cost or an increasing-cost industry? Justify your choice.
According to your authors, the prohibition on alcohol kept the ________ curve relatively stable while the ________ curve became more ________
A) supply; demand; elastic B) supply; demand; inelastic C) demand; supply; elastic D) demand; supply; inelastic
The official definition of the money supply that includes coins, paper money, travelers' checks, conventional checking accounts, and other checkable deposits at banks and savings institutions is called ____
a. M1 b. M2 c. M3 d. L
Which of the following would be an example of an implicit cost? (i) forgone investment opportunities (ii) wages of workers (iii) raw materials costs
a. (i) only b. (ii) only c. (ii) and (iii) only d. (i) and (iii) only