For a previously-illegal good, decriminalization will cause
A. supply to become less elastic.
B. demand to increase.
C. demand to become less elastic.
D. price to rise, unambiguously.
Answer: B
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When a firm shuts down in the short run, it breaks even.
Answer the following statement true (T) or false (F)
A tariff imposed on imported shoes will cause the domestic price of shoes to ________ and the domestic production of shoes to ________.
A. increase; decrease B. decrease; decrease C. increase; increase D. decrease; increase
A move from F to G represents
A. a change in quantity demanded.
B. a change in demand.
C. an increase in demand.
D. a decrease in demand.
Bundling products makes sense for the seller when
A) consumers have heterogeneous demands. B) the products are complementary in nature. C) firms cannot price discriminate. D) both A and C.