The expenditure multiplier is typically
A) equal to 1.
B) greater than 1.
C) negative.
D) less than 1 but greater than 0.
E) greater than 10.
B
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In what ways can economists help auto manufacturers estimate the marginal rate of substitution between features such as vehicle interior size and acceleration?
A) Examining production cost data B) Conducting consumer surveys about willingness to pay for auto features C) Solving the standard consumer model D) Statistically analyzing historical data on purchases of different types of autos E) B and D only
Why does the industry short-run supply curve slope upward?
What will be an ideal response?
Pure monopoly is able to exist because the firm’s product is better than the substitutes that are available in the market.
Answer the following statement true (T) or false (F)
A tax of 10 units on the seller can be shown graphically as a
A. rightward shift of demand. B. leftward shift of supply. C. leftward shift of demand. D. rightward shift of supply.