After a tariff is imposed, consumers must pay a price equal to the
A) world market price.
B) domestic equilibrium price when there is no trade.
C) world market price plus the tariff.
D) world market price less the tariff.
E) domestic equilibrium price when there is no trade plus the tariff.
C
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Two firms compete in a market by selling imperfect substitutes. The demand equations are given by the following equations:
Q1 = 50 - p1 + p2 Q2 = 50 - p2 + p1 For now, assume that each firm has a marginal cost and average cost of 0. a. From the equations, how can you tell these goods are substitutes? How can you tell they are imperfect substitutes? b. Suppose the firms compete by simultaneously choosing price. Find the best response function of each firm as a function of the other firm's price. c. Compute the equilibrium price and quantity for each firm. d. Suppose firm 1 (and only firm 1 ) had a marginal and average cost of $10. How would the equilibrium change? How does this compare to the Bertrand result when the firms sell perfect substitutes?
For much of the history of aid, ____________ has been a driving force in decisions about how much to give in foreign aid.
A. the finance gap of receiving countries B. the opportunity cost of investing in developing nations C. the interest rate in the home country D. political strategy
The theory of consumer demand
a. can be used to explain how an individual allocates time between two competing uses b. is valid only for choices among various physical goods c. is valid only for goods and services purchased for cash d. is valid only if consumers are perfectly rational e. can explain the demand for normal goods, but not the demand for inferior goods
YearCPI2010952011100201210520131042014106According to the table shown, what happened to the cost of living from 2013 to 2014? The cost of living:
A. increased; consumers became better off than they would have been if the price level had not changed. B. increased; consumers became worse off than they would have been if the price level had not changed. C. decreased; consumers became better off than they would have been if the price level had not changed. D. decreased; consumers became worse off than they would have been if the price level had not changed.