According to Keynes,
A) prices decline as inventories increase.
B) prices increase as inventories increase.
C) prices decrease as inventories decrease.
D) prices are sticky and will probably not respond to a change in inventories.
D
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The above figure shows the demand curves in four different markets. If each of the markets has an identical upward sloping supply curve and the same tax is levied on suppliers, which market would produce the largest amount of deadweight loss?
A) A B) B C) C D) D E) C and D
The simplest money-creation multiplier is equal to
A) eD. B) H/e. C) 1/e. D) e/H. E) H/D.
The result for the seller of being able to practice price discrimination will be
A) higher profits. B) lower demand elasticity. C) lower quantity sold. D) cost minimization.
Which of the following is true in the Stackelberg model?
A) The first firm produces less than its rival. B) The first firm produces more than its rival. C) Both firms produce the same quantity. D) Both firms have a reaction curve.