What should happen to the equilibrium price and quantity in a market as a result of a tariff on imports?
A. Equilibrium price should go down, and equilibrium quantity should go up.
B. Equilibrium price and quantity should both go down.
C. Equilibrium price and quantity should both go up.
D. Equilibrium price should go up, and equilibrium quantity should go down.
Answer: D
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Calculate the arc price elasticity of demand for wheat in the two situations below:
The Wheat Market Farmer Brown's Wheat Old price; $3.40/bu Old price; $3.40/bu Old quantity; 2.5 billion bu Old quantity; 28,000 bu New price; $3.20/bu New price; $3.20/bu New quantity; 2.525 billion bu New quantity; 35,000 bu Can you account for the difference in elasticities?
The immigrants most likely to go directly to the lands in the West, rather than be absorbed into the eastern city populations, were from
a. England and Scotland. b. Germany c. Ireland. d. France.
The conflict between the Vice President of Marketing and her sales staff arises because
a. the sales staff are too willing to offer discounts b. the Vice President does not want to negotiate aggressively enough c. the sales staff want to negotiate too aggressively d. the Vice President is more willing to offer discounts to make the sale
A proportional tax charges the same percentage of income, regardless of the size of income
a. True b. False Indicate whether the statement is true or false