Two heavy equipment manufacturers might collude in an effort to do all of the following except one. Which is the exception?
a. determine a more advantageous price and quantity
b. prevent new entry into the market
c. take advantage of the legal benefits that U.S. cartels receive
d. increase their combined profits
e. predict the behavior of other competitors in the heavy equipment market with greater certainty
C
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When quantity is measured in gallons, the price elasticity of demand for milk will be __________ the price elasticity when quantity is measured in quarts
a. the same as b. four times c. one quarter d. two times e. less than
While constructing a price index, economists give greater weight to the items on which people spend less money
a. True b. False Indicate whether the statement is true or false
Which of the following is the most likely effect of lower apple juice prices on the price and quantity purchased of orange juice, a substitute product?
A. The price of orange juice will increase, and the quantity purchased will fall. B. The price of orange juice will fall, and the quantity purchased will increase. C. The price of orange juice will increase, and the quantity purchased will increase. D. The price of orange juice will fall, and the quantity purchased will fall.
If a corrective tax on gasoline results in the efficient output of gasoline by internalizing negative externalities associated with pollution:
A. pollution from gasoline will increase because people are also harmed by the tax. B. pollution from gasoline will be zero because environmental cleanliness is priceless. C. there will be no effect on pollution from gasoline because the tax is paid by the supplier. D. the tax will generate enough revenue to compensate society for the damages resulting from the pollution that still occurs.