Based on your answer above(question 23), which of the following statements best characterizes demand for organic tomatoes.
A. Demand for organic tomatoes is inelastic.
B. Demand for organic tomatoes is elastic.
C. Organic tomatoes are a normal good.
D. Organic tomatoes are an inferior good.
Ans: B. Demand for organic tomatoes is elastic.
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If average total cost is falling marginal cost must also be falling
Indicate whether the statement is true or false
When market participants have rational expectations,
A) they use all information available to them. B) they only slowly adjust their expectations to news which could affect prices or returns. C) they are less likely to make accurate forecasts than if they have adaptive expectations. D) they are able to forecast interest rates more accurately than inflation rates.
During the production process Ajax Corporation releases pollution into the air. Ajax Corporation operates in a monopolistic competitive industry. Which of the following statements addresses the pollution situation?
A) Ajax is taking advantage of asymmetric information. B) This is an example of a market failure and is a reason for the government to regulate the industry. C) The quality of the product could be improved if the amount of pollution can be reduced. D) This is known as the lemons problem.
All industrialized countries have become "service economies" in recent decades. Explain the reasons behind this shift