Suppose it was discovered that the consistent consumption of chocolate raised IQ by ten points. As a result,
A. both equilibrium price and quantity for chocolate will rise.
B. both equilibrium price and quantity for chocolate will fall.
C. equilibrium price will rise and equilibrium quantity will fall for chocolate.
D. equilibrium price will fall and equilibrium quantity will rise for chocolate.
A. both equilibrium price and quantity for chocolate will rise.
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Menu costs are an important source of price stickiness because ________
A) printing menus is costly B) putting items "on sale" reduces firms' revenue C) frequent price changes may lead to losing customers D) all of the above E) none of the above
The Utah Pie case is an example of a violation of the Celler-Kefauver Act
a. True b. False Indicate whether the statement is true or false
Most wage differences can be understood while maintaining the assumption of equilibrium in the labor market. We deviate from that assumption, however, when we consider
a. the superstar phenomenon. b. the theory of efficiency wages. c. compensating differentials. d. differences in educational attainment.
When a country suffers from capital flight, the exchange rate
a. depreciates, because demand in the market for foreign-currency exchange shifts left. b. depreciates, because supply in the market for foreign-currency exchange shifts right. c. appreciates, because demand in the market for foreign-currency exchange shifts right. d. appreciates, because supply in the market for foreign-currency exchange shifts left.