A decrease in the price level in an economy is likely to cause a(n) _____
Fill in the blank(s) with the appropriate word(s).
increase in consumption spending.
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Demand in a perfectly competitive market is Q = 100 - P. Supply in that market is Q = P - 10. What is the market equilibrium price and quantity? Given that price and quantity, how much consumer surplus, producer surplus, and deadweight loss is there? If the government imposes a $10 per unit sales tax, what is the new equilibrium price and quantity? Once the government imposes the tax, how consumer surplus, producer surplus, and dead-weight loss is there?
What will be an ideal response?
Refer to Figure 7.1. Angus values playing the bagpipes at
A) $100. B) $250. C) $350. D) $700.
If the demand curve is vertical, the elasticity is
A. 1.0. B. 0.0. C. 0.5. D. infinite.
Under which type of market structure is the firm’s pricing decision the most difficult?
a. perfect competition b. monopoly c. monopolistic competition d. oligopoly