The effect of an import quota on the domestic market is to shift the:
a. demand curve to the right by the amount of the quota.
b. demand curve to the left by the amount of the quota.
c. supply curve to the right by the amount of the quota.
d. supply curve to the left by the amount of the quota.
e. consumers' marginal utility curves if they prefer foreign goods to domestic goods.
c
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Which of the following cost functions will exhibit both decreasing and increasing marginal costs?
A) a cubic cost function B) a quadratic cost function C) a linear cost function D) All of the above
Assuming that bus travel is an inferior good, a decrease in consumer income, other things being equal, will cause:
a. a downward movement along the demand curve for bus travel. b. no change in the demand curve for bus travel. c. an upward movement along the demand curve for air travel. d. a rightward shift in the demand curve for bus travel.
Asymmetric information is
A) when a market failure occurs. B) an externality. C) when the producer has information on the product that the consumer lacks. D) the regulatory price for a natural monopoly.
Microeconomics:
What will be an ideal response?