The elasticity of demand for gasoline is likely to be
A. small and shrink as time goes by.
B. small, but grow as time goes by.
C. large and shrink as time goes by.
D. large and grow as time goes by.
Answer: B
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The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel
If the market is competitive and unregulated, the equilibrium quantity of steel is ________ tons and the efficient quantity of steel is ________ tons. A) 2; 2 B) 2; 4 C) 4; 2 D) None of the above answers is correct.
Collusion:
A. occurs only when no dominant strategy is present. B. is a cooperative outcome between competitors. C. is observed, but economists cannot theoretically model it. D. is a theoretical concept that is rarely observed.
Speculators serve no useful function in a market
a. True b. False Indicate whether the statement is true or false
In drawing a budget line it is assumed that:
A) consumer preferences are fixed. B) the prices of the two products are variable. C) money income is fixed. D) consumer willingness to substitute between the two products is fixed.