Which of the following about demand is true?
a. The height of the demand curve for a product at a given quantity represents the marginal value derived by the consumption of that unit.
b. The height of the demand curve for a product at a given quantity reflects the total value consumers derive from all units of the good consumed.
c. The total area above the demand curve for a product is equal to consumer surplus.
d. At every quantity, the height of the demand curve for a product represents the cost of producing that unit.
A
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As the Federal Trade Commission currently interprets the Herfindahl-Hirschman index (HHI), an industry is considered to be highly concentrated if the HHI value is above
A) 100. B) 1,000. C) 2,500. D) 5,000.
A tax is imposed on wine. Sellers will bear the full burden of this tax if the: a. demand for wine is perfectly inelastic
b. price elasticity of demand for wine equals 1.0. c. demand for wine is unit elastic. d. supply for wine is perfectly inelastic.
What is a criticism of the CPI?
If the price of bread is zero and the price of cheese is positive, then the budget constraint between bread (on the horizontal axis) and cheese (on the vertical axis) would
a. be vertical. b. coincide with the vertical axis. c. coincide with the horizontal axis. d. be horizontal.