Refer to the given data. At a world price of $5:
Answer the question on the basis of the following data for the hypothetical nations of Alpha and Beta. Q s is domestic quantity supplied and Q d is domestic quantity demanded.
A. Alpha will want to import 50 units of steel.
B. Beta will want to import 60 units of steel.
C. Alpha will want to export 50 units of steel.
D. neither country will want to export steel.
C. Alpha will want to export 50 units of steel.
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In the figure, the equilibrium price is initially $3 per bushel of wheat. If suppliers come to expect that the price of a bushel of wheat will rise in the future, but buyers do not, the current equilibrium price will
A) rise. B) not change. C) fall. D) Perhaps rise, fall, or stay the same, depending on whether there are more demanders or suppliers in the market.
All of the following are true regarding transfer prices except which one?
A) Transfer prices can affect the taxes a firm must pay. B) The transfer price is the internal firm price on an input that input-producing division charges the input-using division. C) Transfer prices occur when a firm engages in divestiture. D) Transfer prices are an accounting entry for the within-firm price of an input.
If a decrease in the price of theater tickets increases the total revenue earned by the theater, this is evidence that demand is:
a. price elastic. b. price inelastic. c. unitary elastic. d. perfectly inelastic.
Assume that the budget constraint in the figure below is: P E E + P A A = I, where I is total income and P E is the price of education and P A is the price of all other goods. If U(E,A) = A + E, P E = 2, P A = 1, and I = 10. If the price of education drops to 1, how much of the two goods are consumed now?
