Recall the Application. If the decrease in price of illegal drugs is primarily due to a change in demand, the equilibrium quantity of drugs
A) will increase. B) will decrease.
C) will not change. D) may or may not change.
B
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After a permanent increase in the money supply
A) the exchange rate overshoots in the short run. B) the exchange rate overshoots in the long run. C) the exchange rate smoothly depreciates in the short run. D) the exchange rate smoothly appreciates in the short run. E) the exchange rate remains the same.
In a Malthusian world, what would improve the standard of living permanently?
A) a war B) a new medical drug C) birth control D) democracy
What is the marginal revenue from producing the fourth unit?
a. 90 b. 50 c. 20 d. 180
Vertical relationships can increase profits through
a. providing a mechanism for firms from evading regulation b. creating a double-markup problem c. making the incentives of manufacturers and retailers unaligned d. preventing price discrimination