In this supply and demand curve, the tax causes the equilibrium quantity of the good (bought and sold) to ______.
a. rise
b. fall
c. move further right on the demand curve
d. move further right on the supply curve
b. fall
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The social arrangement that gives John Grisham, the writer of best-selling novels, the ownership of his novels is
A) a market. B) property rights. C) absolute advantage. D) dynamic comparative advantage.
What role do losses play in a competitive price-searcher market?
a. They penalize a firm for producing a differentiated product. b. They signal that more resources are needed in a particular market. c. They show firms that barriers to entry are high. d. They send a message that more value would be created if the resources were used to produce other goods.
The ratchet effect means that:
A. when aggregate demand increases, the price level remains constant. B. when aggregate supply decreases, the price level increases. C. when aggregate supply increases, the price level decreases. D. when aggregate demand decreases, the price level remains constant.
Refer to the normal-form game of advertising shown below.Firm AFirm B??AdvertiseDo Not Advertise?Advertise$0,$0$175,$10?Do Not Advertise$10,$175$125,$125Suppose there is a 50 percent chance that the advertising game depicted in Figure 10-17 will end next period. The collusive agreement {(not advertise, not advertise)} is:
A. unsustainable since $175 < $25. B. sustainable since $175 < $250. C. sustainable since $20 > $50. D. unsustainable since $350 > $50.