Every time new firms enter a monopolistic competitive market, the firms already in the market find their
a. price rising to make up for lost customers
b. cost curves shifting upward, reflecting increased inefficiency
c. profits increasing because total revenues increase with more firms in the market
d. demand curves becoming more inelastic as only loyal customers remain
e. demand curves shifting inward to the left
E
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If income decreases or the price of a complement rises
A) the demand curve for a normal good shifts leftward. B) the demand curve for a normal good shifts rightward. C) there is an upward movement along the demand curve for the good. D) there is a downward movement along the demand curve for the good.
Describe the Asian financial crisis as it unfolds beginning with the devaluation of the Thai currency in July 1997, followed by the Malaysian, Indonesian and South Korean crises
As part of your answer, elaborate on the Malaysian response to the crisis versus its troubled neighbors responses.
Third-degree price discrimination exists whenever:
a. the seller knows exactly how much each potential customer is willing to pay and will charge accordingly. b. different prices are charged by blocks of services. c. the seller can separate markets by geography, income, age, etc., and charge different prices to these different groups. d. the seller will bargain with buyers in each of the markets to obtain the best possible price.
The democratic system of one person/one vote:
A. does not necessarily lead to a political system that favors the poor because many of the poor are illiterate and unable to vote. B. necessarily leads to a political system that favors the poor because the poor organize themselves into groups that can deliver votes to politicians. C. necessarily leads to a political system that favors the poor because there are more poor voters than there are rich voters. D. does not necessarily lead to a political system that favors the poor, because many of the poor do not vote, believing that their individual votes cannot make a difference.