In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. An increase in the price of a product that is a complement to X will
What will be an ideal response?
decrease D, decrease P, and decrease Q.
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Vertical integration often aims to
a. Prevent the retailers from defeating upstream price discrimination through arbitrage b. Avoid paying higher taxes c. Serve as a "signal" of the manufacturer's belief of the likely success of his product d. All of the above
Which of the following statements is based on positive analysis?
a. Individuals without health insurance have less access to physicians' services than those who have health insurance. b. The high cost of health insurance places U.S. firms at a competitive disadvantage with their foreign competitors. c. Employers should be required to provide health insurance for all full-time workers and their dependents. d. none of the above. e. Both a and b.
The distribution of surplus received from a subsidy offered in a market where a positive externality is present depends on:
A. how the subsidy is distributed among those affected by the externality. B. if those who are affected receive their true value of the externality. C. where the government gets the money to pay for the subsidy. D. None of these statements is true.
Which of the following markets would reach long-run equilibrium fastest?
A) online retail B) auto dealers C) oil extraction D) World Series tickets