When Coca-Cola put real cocaine in their soda in the early 1900's, then what else did they create?
A. A new equilibrium point on the Production Possibiliites Curve.
B. A more inelastic demand curve.
C. A more elastic demand curve.
D. A new equilibrium point on the total revenue curve.
Answer: B. A more inelastic demand curve.
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Use the following graph to answer the next question.
If the federal funds market is at equilibrium at point C and the Federal Reserve decides to conduct an open-market sale, then it must be trying to set a ________.
A. lower target federal funds rate by increasing the amount of reserves in the market B. higher target federal funds rate by increasing the amount of reserves in the market C. higher target federal funds rate by reducing the amount of reserves in the market D. lower target federal funds rate by reducing the amount of reserves in the market
The table above shows a total product schedule. Suppose that labor costs $20 per worker and fixed costs are $60. The average variable cost of producing 80 units equals ________ per unit
A) $0.75 B) $1.00 C) $1.75 D) $20 E) $0.25
Nancy loves to landscape her yard, but her neighbor Tom places a low value on his landscaping. When Tom's grass is neglected and gets long, Nancy will mow for Tom. This is an example of: a. the fallacy of composition
b. a pollution tax. c. a private solution to a negative externality problem. d. how lazy Tom is.
Which oligopoly model leads to price rigidity? Graphically show why.
What will be an ideal response?