Suppose a hurricane causes a great deal of destruction in Texas. After the hurricane, it takes much longer than usual for the reconstruction of homes to take place. A possible explanation for this is
A) greed by suppliers of construction materials increased.
B) government prevented price gouging during the reconstruction period.
C) prices of construction materials fell in the rest of the nation
D) environmental restrictions on lumbering in the Pacific Northwest were relaxed.
Answer: B
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A bond that pays a high interest rate
A. is more secure than one that pays a low interest rate. B. is guaranteed by the U.S. government. C. reflects the higher risk that the issuer will default. D. will sell for a high price.
For a firm to maximize total profits through price discrimination, it should
a. Charge a high price to consumers with an inelastic demand and low price to consumers with an elastic demand b. Charge a low price to consumers with an inelastic demand and high price to consumers with an elastic demand c. Charge the same price to both sets of consumers d. Charge nothing to both set of consumers-throw a party
A per-unit government tax on producers of a good tends to
A) reduce the supply of the good. B) increase the supply of the good. C) cause an upward movement along the supply curve. D) not have any effect on the good's supply.
With an effective price ceiling, quantity demanded exceeds quantity supplied.
Answer the following statement true (T) or false (F)