Suppose the company that owns the vending machines on your campus has doubled the price of a can of soda. If they then still sell almost the same number of sodas per day, this suggests:
A. soda purchases represent a large fraction of students' budgets.
B. there are few other places to purchase soda on campus.
C. the price elasticity of demand for soda is equal to 1.
D. students do not have good nutritional information.
Answer: B
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?Which of the following is an advantage of panel data?
A. ?We can difference the dependent variable, y, across time for different cross-sectional units. B. ?We can add the dependent variable, y, across time for different cross-sectional units. C. ?We can difference the dependent variable, y, across time for the same cross-sectional units. D. ?We can add the dependent variable, y, across time for the same cross-sectional units.
Exhibit 10-4 Kinked demand curves
In Exhibit 10-4, the exhibit represents a kinked-demand oligopoly model. Suppose the current price is $50. If one firm in the oligopoly now attempts to raise price, all firms will:
A. follow along demand curve D1. B. follow along demand curve D2. C. ignore this price increase and cause the price-raising firm to move along D1. D. ignore this price increase and cause the price-raising firm to move along D2.
Refer to the above figure. An external benefit exists. The amount of that benefit is represented by
A. P3. B. P4. C. the vertical distance between D1 and D2. D. the distance between G and F.
Suppose the United States initially has a trade deficit. Then U.S. firms increase their imports from Canada, financing that increase by borrowing from Canada
The current account deficit is now ________ and the capital and financial account surplus is now ________. A) larger; larger B) larger; smaller C) smaller; larger D) smaller; smaller