Suppose milk and cereal are compliments and the demand for milk is Qdm = 40 - 6Pm - 2Pc, where Qdm stands for millions of gallons of milk demanded, Pm stands for the price of milk and Pc stands for the price of cereal. The supply of milk is Qsm = 6Pm - 8, where Qsm stands for millions of gallons of milk supplied. The demand and supply of cereal are Qdc = 90 - 5Pc - Pm and Qsc = 5Pc - 10, respectively, where Qdc stands for millions of boxes of cereal demanded and Qsc stands for millions of boxes of cereal supplied. Suppose the government imposes a $2.00 per gallon tax on milk. The supply function for milk becomes:
A. Qsm = 4Pm - 6.
B. Qsm = 6Pm - 6.
C. Qsm = 6Pm - 20.
D. Qsm = 6Pm - 10.
C. Qsm = 6Pm - 20.
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Which of the following is a difference between corporations and partnerships?
a. Partnerships are subject to double taxation; corporations are not. b. With partnerships, ownership rights are divisible and easily transferable; this is not true for corporations. c. Corporate owners face limited liability; owners of partnerships do not. d. Corporations always have more owners than partnerships.
Adam has 3 apples and 3 oranges. Eve has 2 apples and 2 oranges. The marginal utilities for Adam and Eve are summarized in the above table. Adam asks Eve to exchange one of her apples for an orange.
A. Eve will be willing to make the exchange, because her total satisfaction will remain unchanged. B. Eve will be unwilling to make the exchange, because she loses 15 utils of satisfaction. C. Eve will be unwilling to make the exchange, because she loses 5 utils of satisfaction. D. Eve will be willing to make the exchange, because her total satisfaction will increase.
Other things equal, the currency price of U.S. dollars in terms of foreign currency is negatively related to foreign demand for U.S. goods and services
a. True b. False Indicate whether the statement is true or false
A permanent negative supply shock causes stock prices to ________ than they would if the supply shock were temporary
A) fall more B) fall less C) rise more D) rise less