Many fast-food restaurants have begun offering value meals with fruit or salad instead of French fries. If consumers find this idea attractive, the market demand for potatoes will most likely:
A. increase, which may result in short-run losses for potato growers.
B. decrease but have no effect on the profits earned by potato growers in the short run.
C. increase but have no effect on the profits earned by potato growers in the short run.
D. decrease, which may result in short-run losses for potato growers.
Answer: D
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Union wages in the United States are, on average,
a. equal to nonunion wages b. twice as high as nonunion wages c. half of nonunion wages d. 15 percent higher than nonunion wages e. 50 percent higher than nonunion wages
Which of the following is an industry without significant barriers to entry?
a. Electricity generation b. Natural gas distribution c. Cable television provision d. Corn farming e. Postal services
An increase in all prices is inflation
a. true b. false
If the demand for cigarettes is highly inelastic, this indicates that:
A. higher cigarette prices will increase the demand for cigarettes. B. the price elasticity coefficient of cigarettes exceeds 1. C. the price elasticity coefficient of cigarettes equals 1. D. the quantity of cigarettes purchased by consumers is not very responsive to a change in the price of cigarettes.