Effects of a subsidy
What will be an ideal response?
- Increase in supply
- A fall in price and increase in Q produced
- Increase in Marginal cost
- Payments by gov to farmers
- Inefficient overproduction
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Who is likely to complain to state regulatory authorities about unlicensed movers defrauding customers?
A) Consumer organizations B) Individual customers who are planning to move C) Individual customers who have already used unlicensed movers and have not been thoroughly satisfied D) Licensed movers E) Unlicensed movers
In general, a "big ticket item" such as a house or new car will
A) tend to have a more inelastic demand the more time that passes. B) tend to have an inelastic demand because spending on the item takes up a large share of the average consumer's budget. C) tend to have an inelastic demand because it has many substitutes. D) tend to have a more elastic demand than a lower-priced good.
A demand curve is derived from
A) the production possibilities curve. B) consumer's income. C) a demand schedule. D) an equilibrium.
In order to prove that Dr. Pepper and 7-Up are substitutes, economists should test the ____ and get a ____.
A. price elasticity of demand; number less than 1 B. income elasticity; positive number C. cross-price elasticity; positive number D. price elasticity of demand; number greater than 1