In the short run, whenever excess demand exists, it is necessary to
A. impose a price ceiling on the good.
B. ration the good.
C. increase the supply of the good.
D. put the good on sale.
Answer: B
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If Slick Shades has a constant marginal cost of production equal to $40 and the distributors have a constant marginal cost of distribution equal to $20, what is the profit-maximizing number of sunglasses (in hundreds) for Slick Shades to produce?
The figure above shows the wholesale demand and marginal revenue curves for Slick Shades Sunglasses, a sunglasses firm with market power. Slick Shades Sunglasses has a constant marginal cost of production and it sells to perfectly competitive independent retail distributors that have a constant marginal cost of distribution.
A) 90
B) 80
C) 50
D) 70
Federal Reserve Banks are bankers' banks.
Answer the following statement true (T) or false (F)
The Producer Price Index (PPI) is the best index to measure average price changes faced by
A. Producers. B. Consumers. C. Importers. D. Labor unions negotiating COLAs.
The cross elasticity of demand is
A. the change in the price of one good divided by the change of quantity demanded of another good. B. the percentage change in the price of one good divided by the percentage change in the price of another good. C. the percentage change in the demand of one good divided by the percentage change in price of another good. D. the percentage change in the quantity demanded of one good divided by the percentage change in the quantity demanded of another good.