The current price floor in the agricultural lettuce market makes it such that the price of lettuce is 25% higher than the equilibrium price and that 100 heads of lettuce are demanded
Assuming that the elasticity of demand for lettuce is -0.50, how much would revenue (P ? Q) change for the lettuce company if the government removed the current price floor?
A) Revenue will increase by $15.60.
B) Revenue will decrease by $15.60.
C) Revenue will increase by $40.60.
D) Revenue will increase by $ 9.40.
B
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A person is calculating his permanent income by adaptive expectations. Last year's permanent income was 38,000, this year's actual income is 44,000, and j = 0.25. This year his permanent income is
A) 39,500. B) 42,500. C) 59,000. D) 20,500
Between 1967 and 1999, the industrial structure of the U.S. experienced which of the following changes?
(a) The industries experiencing slow or negative growth—primary metals, transportation, mining and steel—sought protection from competition from the federal government. (b) All major nondurable sectors experienced growth. (c) Machinery and electronics experienced rapid growth. (d) All of the above.
The Keynesian short-run aggregate supply curve is demonstrated graphically as a
A) vertical line. B) horizontal line. C) upward sloping curve. D) downward sloping curve.
When information asymmetry exists in a market, government:
A. always steps in to try to correct it. B. never steps in to try to correct it. C. sometimes steps in to try to correct it. D. only steps in to correct it if it can ensure complete information.