If perfect competitors are making profits in the short run, then in the long run there will be _____ firms in the industry and market price will _____.
A. fewer; rise
B. fewer; fall
C. more; rise
D. more; fall
D. more; fall
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If an individual buys only two goods and these must be used in a fixed relationship with one another (e.g., coffee and cream for a coffee drinker who never varies the amount of cream used in each cup), then
a. there is no substitution effect from a change in the price of coffee. b. there is no income effect from a change in the price of coffee. c. Giffen's Paradox must occur if both coffee and cream are inferior goods. d. an increase in income will not affect cream purchases.
By 2016, the unemployment rate in the US had fallen from a peak of 10% in 2009 to:
A. under 5%. B. 7.8%. C. 6.2%. D. under 3%.
Which is the most accurate statement?
A. Company towns have declined in importance in the U.S. B. Company towns are of growing importance in the U.S. C. There never were any company towns in the U.S. D. Company towns today are as important as they were in the past.
Tax influence of the elasticity of supply
What will be an ideal response?