If grocery stores were legally required to charge a 10-cent fee for disposable grocery bags, who would bear the largest burden of this fee?
What will be an ideal response?
Since consumers need groceries and would most likely continue to purchase them (and the bags to carry them home) even with the 10-cent bag fee, the demand for disposable bags is likely to be relatively inelastic. With an inelastic demand, the consumer would bear the largest burden of the bag fee.
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Supply curves slope upward because:
a. the quality is assumed to vary with price. b. technology improves over time, increasing the ability of firms to produce more at each possible price. c. increases in the price of a good lead to rightward shifts of the supply curve. d. rising prides provide producers with the incentives needed to increase the quantity supplied.
Java Hut, a U.S. coffee retailer, buys $10 million worth of coffee beans from Colombia. It also pays $5 million for paper cups and utilities, all produced in the U.S. It sells the coffee it produces using the above inputs to U.S. consumers for $50 million. Overall how do these expenditure affect net exports? How do these expenditures effect U.S. consumption?
A major threat to longer-term profits exists when barriers to entry into an industry are high.
A. True B. False
The Wagner Act
A) permitted unions to engage in collective bargaining. B) permitted states to pass right-to-work laws. C) restricted activities of heads of unions that were not beneficial to union members. D) mandates compulsory arbitration in some key industries.