On September 3, 2003, Universal Music Group announced plans to reduce the wholesale price of music CDs it distributes by an average of 25-30 percent. All else constant (i.e
, ignoring the effects of file-sharing programs), how would this change affect the retail market for new music CDs? A) Demand for CDs would increase, causing equilibrium price and quantity to increase.
B) The supply of CDs would increase, causing equilibrium price to decrease and equilibrium quantity to increase.
C) Demand for CDs would decrease, causing equilibrium price and quantity to decrease.
D) The supply of CDs would decrease, causing equilibrium price to increase and equilibrium quantity to decrease.
B
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Use the information in the table above to calculate the value of government saving
A) $15 million B) -$5 million C) $5 million D) $45 million
Which of the following observations is not true?
A. Demand curve of the perfectly competitive firm is perfectly elastic. B. There is only one price for a product in a perfectly competitive market. C. A firm in a perfectly competitive market can sell as much as it wants at market price. D. Demand curve of the perfectly competitive industry is perfectly elastic.
Consider borrowers and lenders who agree to loans with fixed nominal interest rates. If inflation is higher than what the borrowers and lenders expected, then who benefits from lower real interest rates?
A. Only the borrowers benefit. B. Only the lenders benefit. C. Both borrowers and lenders benefit. D. Neither borrowers nor lenders.
Answer the following questions true (T) or false (F)
1. Under the Patient Protection and Affordable Care Act (ACA), residents who do not have health insurance will not be allowed to seek employment. 2. Under the Patient Protection and Affordable Care Act (ACA), insurance companies are required to participate in a high-risk pool that will cover individuals with pre-existing medical conditions. 3. Those who favor changes in the market for health care that would make it more like the markets for other goods and services are generally in favor of universal health care coverage.