One of the theories that explains oligopoly behavior is the kinked demand curve theory. The kinked demand curve
a. applies when competitors match price decreases but not price increases
b. could apply to market demand in any market structure
c. applies when competitors match price increases but not price decreases
d. applies to the price leadership model
e. applies when competitors act independently
A
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At the beginning of World War II, a rationing system was established in the United States. Ration stamps or cards were issued for a variety of commodities such as canned milk and gasoline
To receive a gasoline ration card, a person had to certify a need for gas. The ration cards ranged from the most limited A card which only allowed 3 to 4 gallons per week to the most generous X card, which allowed the carrier to buy an unlimited amount of gasoline. A government entity, the War Price and Rationing Board, decided who received and A or an X card. Gasoline cards were allocated through A) command. B) market price. C) majority rule. D) force.
Suppose that the nominal exchange rate between the U.S. dollar and the Mexican peso is 0.10 dollars per peso. If Mexico's inflation is 10 percent and the United States' inflation is 0 percent, from the U.S. point of view, the real exchange rate
A) appreciates to 0.11 dollars per peso. B) depreciates to 0.11 dollars per peso. C) appreciates to 0.09 dollars per peso. D) depreciates to 0.09 dollars per peso.
If the price of hotdogs increases by 10 percent and the quantity supplied by meat packing companies increases by 15 percent, what is the price elasticity of supply?
A) 1.65 B) 1.20 C) 0.67 D) 1.50
Refer to the diagram below. Cheri's budget line shifts inward from CD to AB. Which statement below is consistent with this shift?
A. Both prices double, while her income also doubles
B. Both prices increase by 20 percent, while her income increases by 15 percent
C. Both prices decrease by 10 percent, while her income falls by 15 percent
D. Both prices decrease by 10 percent, while her income falls by 6 percent