The deadweight loss from a $3 tax will be largest in a market with
a. inelastic supply and elastic demand.
b. inelastic supply and inelastic demand.
c. elastic supply and elastic demand.
d. elastic supply and inelastic demand.
c
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In monopolistic competition, firms sell a differentiated product. In perfect competition, firms sell an identical product. How do these markets differ as a result?
What will be an ideal response?
Suppose Dublin Electronics charges regular customers $90 for a Blu-ray player but allows senior citizens to purchase the same item for $75. Is this likely to be a successful price discriminating strategy?
A) No, because there are many different brands of Blu-ray players and consumers will shop around. B) Yes, because senior citizens are likely to have a more elastic demand and therefore will be willing to pay a lower price compared to regular customers. C) Yes, firms price discriminate to maximize profits. D) No, price discrimination will not be effective because the store cannot prevent senior citizens from buying large quantities of Blu-ray players and reselling them for a profit.
Figure 9-1
In , which of the following correctly labels the curves in the aggregate demand/aggregate supply model?
a.
(1) is LRAS, (2) is SRAS, and (3) is AD.
b.
(1) is SRAS, (2) is LRAS, and (3) is AD.
c.
(1) is AD, (2) is SRAS, and (3) is LRAS.
d.
(1) is LRAS, (2) is AD, and (3) is SRAS.
Which of the following statements about migration is not true?
A. Migration is greater among younger workers compared to older workers because older workers have less time over which to benefit from the returns to migration. B. Migration is greater among married couples compared to single-person households because migration costs are less for married couples. C. Migration is greater among people who like the adventure of moving compared to people who do not like the adventure of moving because the psychic costs of moving are less for those who enjoy moving. D. A tied-stayer is someone who would move if he or she were single. E. Migration is greater among highly educated workers compared to less educated workers because the returns to education for highly educated workers vary more from location to location than for workers with low levels of education.