The demand for Farm fresh brand apple juice is likely to be:
A. very price elastic, because there are many close substitutes available.
B. less price elastic, because there are many close substitutes available.
C. very price elastic, because the adjustment time is so fast.
D. less price elastic, because the adjustment time is so slow.
AACSB: Reflective Thinking
A. very price elastic, because there are many close substitutes available.
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Supply-side economic policies are designed to shift the aggregate supply curve to the left, whereas Keynesian economic policies focus on shifting the aggregate demand curve to the right during recessions and to the left during economic expansions
a. True b. False Indicate whether the statement is true or false
Sally owns a beauty shop that generates a total revenue of $90,000 per year. She pays her employees a total of $45,000 . pays $10,000 for rent, insurance, and utilities; and pays $15,000 for beauty supplies such as hair spray and shampoo. Sally is glad to have the shop, because her next best alternative is to work as a cafeteria attendant for a salary of $8,000 a year. From this we can conclude
that Sally a. would earn more working at the cafeteria b. makes an economic profit of $20,000 c. makes an economic profit of $12,000 d. has total explicit costs of $78,000 e. has total implicit costs of $12,000
Discuss some of the reasons why monopoly power is considered undesirable
Because monopolistically competitive firms produce differentiated products, each firm
a. faces a demand curve that is horizontal. b. faces a demand curve that is vertical. c. has no control over product price. d. has some control over product price.