The supply of Russian caviar from the Caspian Sea diminished after the collapse of Soviet communism. The price of caviar rose from $395 a pound to $595 a pound. Still, revenue from the sale of caviar rose 30 percent. You can conclude that:
A. the supply curve for caviar has shifted to the left along an elastic demand curve.
B. an elastic supply curve for caviar has shifted to the left.
C. an inelastic supply curve for caviar has shifted to the left.
D. the supply curve for caviar has shifted to the left along an inelastic demand curve.
Answer: D
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Suppose a supplier has an agreement with a firm to be paid $3,500 in 2 years. If the annual interest rate is 4 percent, the supplier would be indifferent between receiving ________ now and waiting 2 years to receive the $3,500.
A) $3,233.46 B) $3,235.95 C) $3,450.45 D) $3,451.32
Which of the following does not illustrate opportunity cost?
a. If I study, I must give up going to the football game. b. If I buy a computer, I must do without a 35" television. c. More consumer spending now means more spending in the future. d. If I spend more on clothes, I must spend less on food.
As long as TVC < TR, a firm will have a positive level of output in the short run
a. True b. False Indicate whether the statement is true or false
A duopoly in which both firms have a Lerner index of monopoly power equal to 0 is probably a:
A. Stackelberg oligopoly. B. Bertrand oligopoly. C. Cournot oligopoly. D. Sweezy oligopoly.