In the figure, the equilibrium price is initially $3 per bushel of wheat. If buyers come to expect that the price of a bushel of wheat will rise in the future, but sellers do not, the current equilibrium price will
A) rise.
B) not change.
C) fall.
D) Perhaps rise, fall, or stay the same, depending on whether there are more demanders or suppliers in the market.
A
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When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market
a. It is appropriate to ignore that the market price includes a margin above marginal cost b. It is OK if the product on the market includes costly features your downstream division does not use c. Consider whether the product on the market is inexpensive because its quality is lower than you use d. if it is similar enough, it is justification for you producing it in-house
Use the concept of economic rent to explain how rent controls could have an effect quite opposite to the intention.
What will be an ideal response?
The argument a tariff on imported goods produced by an unlimited industry could benefit the members of the domestic union is
A) the national defense argument. B) the protect domestic jobs argument. C) the infant industry argument. D) the dumping argument.
How will a decrease in price affect a firm's revenues?
A) It depends on the price elasticity of demand. B) Revenues will stay the same. C) Revenues will decrease. D) Revenues will increase.