To maximize its revenue
A) a firm facing inelastic demand should always raise its price.
B) a firm facing elastic demand should always raise its price.
C) a firm should always charge the highest price possible regardless of the elasticity of demand.
D) None of the above answers is correct.
A
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American farmers who sell beef to Europe benefit most from
A) a decrease in the dollar price of euros. B) an increase in the dollar price of euros. C) a constant dollar price for euros. D) a European ban on imports of American beef.
Producers tend to be better represented in lobbying efforts and other elements of the political process than consumers because
a. producers are generally more intelligent and, therefore, better informed. b. producers are generally better organized than consumers. c. producers are better educated than consumers. d. the number of producers affected by the outcome of a particular political issue is usually greater than the number of consumers affected.
Refer to Figure 5.7. Which diagram best represents an Engle curve where soup is a normal good?
A. A
B. B
C. C
D. D
Refer to Figure 17-10. Consumer surplus with the tariff is
a. A.
b. A + B.
c. A + C + G.
d. A + B + C + D +E + F.