In general, demand curves for luxuries tend to be price elastic
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to the above figure. A unit tax of $2 has been placed on the good. Which of the following statements is TRUE about the vertical distance between S1 and S2?
A) The distance is less than $2. B) The distance is $2. C) The distance is more than $2. D) The distance cannot be determined with the information given.
Consider a firm with one fixed cost, rent, and one variable cost, wages. Describe the effects of an increase of this firm's rent
If the existing unemployment rate is 3.1 percent and the natural unemployment rate is 4.5 percent, the cyclical unemployment rate is ________ percent.
a. 7.6 b. 3.8 c. -1.4 d. 1.4
Vertical contracts between manufacturers and retailers often aim to
a. Prevent the manufacturers from upstream price discrimination b. Reward the manufacturer for undertaking the risk inherent in introducing a new product c. Serve as a "signal" of the manufacturer's belief of the likely success of his product d. All of the above